Word: lcd
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Taiwan is the world's premier electronics factory, but the world doesn't know it. The island's nimble manufacturers produce more than two-thirds of the globe's LCD monitors, nearly three out of four notebook PCs, and four-fifths of PDAs. Yet most of this digital gear is made under contracts with big foreign tech companies like HP, Apple and Dell and is resold to consumers carrying those well-known brand names. No longer...
...Taiwan is reaching for the limelight. Earlier this month, Taiwan consumer-electronics company BenQ, a relatively unknown maker of everything from notebook computers to LCD TVs to MP3 players, agreed to acquire the mobile-phone business of German behemoth Siemens, thereby becoming the world's fourth-largest mobile-phone company with total annual revenues of nearly $11 billion. Not only is the firm gaining size, it is gaining marketplace visibility. BenQ gets to use the top-notch Siemens brand name for five years. K.Y. Lee, BenQ's ceo, plans to mark his phones BenQ-Siemens, pumping his own brand more...
...solution to this high-tech death spiral: get big quick, through acquisitions that produce economies of scale along with brand recognition. Other Taiwan companies are striking deals similar to BenQ's. Earlier in June, Taiwan's TPV Technology agreed to buy part of the computer-monitor-and-LCD-TV operation of Dutch electronics giant Philips for $358 million. The deal solidifies TPV as the world's largest maker of computer displays...
...limping behemoths like Sony have discovered, staying ahead in electronics is a relentless challenge. A host of new technologies on the horizon could disrupt LCD's emergence just as easily as LCD has begun to supplant cathode-ray tubes. And even against existing technologies, Sharp faces a formidable battle. Junzo Masuda, director of iSuppli, a market-research firm in Kyoto, says the real test is how Sharp's big-screen TVs ultimately fare against a technology called plasma display panel (PDP), currently the dominant type of large-screen, flat-panel displays. Sharp may have better technology, but Masuda wonders whether...
...However this contest between PDP and LCD plays out, Machida and his team are?for now?relishing their moment in the sun. Hisakazu Torii, a director of research at DisplaySearch, a consultancy in Tokyo, says Sharp's foresight in LCDs has completely transformed the TV business and Sharp's position in the corporate landscape: "Sharp can sell its TVs for $200-$300 more than Sony, which is a total reversal of the old situation." Sharp's Hamano agrees: "In the long history of the electronics market, all companies have their moment of prime time. And for Sharp, I think this...