SONY Expects to Outsource 50% of LCD TV Production. Taiwan Factories Expect to Benefit the Most. All Result from Yen Appreciation.

SONY (Taiwan) indicated that the sales target of its LCD TV remains at 25 million sets in 2010.  However, as the yen appreciation reached a 17-year high, KAWADA Toshiro, the director of Home Audio Business Division, at SONY head office stated that the company will try to redeploy bases of models and manufacturing for coping with the currency appreciation.  It is estimated that the proportion of outsourced production will reach around 50%, which is higher than the market’s expectation.  Taiwan sub-contract companies are expected to be the largest beneficiaries.

In response to pressure on the yen appreciation, SONY confirmed on 31 August 2010 that starting from its 2010 fiscal year in April, the proportion of outsourced production of LCD TV will reach 50%, which is higher than 40% forecasted by Display Search, a global market research and consulting firm.  SONY’s sales target expects to reach 25 million sets.  Display Search believes that as affected by the yen appreciation, in 2011, the proportion of outsourced production by SONY will gradually increase to 80%, the existing sub-contract partners including Foxconn Technology Group and Wistron Corporation are expected to benefit from the above increase.

In addition, SONY will be launching its 3D TV in Taiwan and forming strategic alliance with CMC.  These two companies aim to gain about 50% of Taiwan’s market share.  This year (2010), SONY’s 3D TV global sales volume is expected to reach 2.5 million sets, which accounts for 10% of the total sales volume.

SONY (Taiwan) estimates that the market demand for 3D TV in 2010 will be 6,000 sets.  SONY is confident to gain a market share of 50%.  SONY estimates a market sales volume of one million sets in the whole LCD TV market segment, this sales figure will enable SONY to maintain its leading position in sales volume as last year.  (2010.08)
/DC