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The R&D focus is on improving appearance and size to fight the LCD transition. Makers have also latched onto HD’s appeal.
CRT TV makers in China continue to actively position the technology as an alternative to LCD models amid a steady decline in market demand. The product line suffered a blow last year, with the number of worldwide LCD TV shipments outclassing that of CRT sets for the first time, according to DisplaySearch.
Makers are focusing on improving the look and size of their latest offerings, with more pure-flat and slim 29in and above CRT TVs released in 2007. High-definition (HD) content support has also become an R&D focus area.
Lower CRT output last year prompted a unit price increase of up to 15 percent. With the region’s CRT TV industry still relying heavily on overseas contracts, stricter product specifications demanded by the US market prompted makers to expand their overseas clients to include more developing countries.
Investment has increased on R&D efforts to approximate the appearance of LCD models, resulting in slimmer 21in and 29in CRT TV models. Units with added function are also expected to increase market demand. Producing DVD combo models is the next likely R&D hotspot as both CRT technology and form factor mature.
Konka Group Co. Ltd recently launched the i-Slim series featuring thin and ultra-thin models. The product line includes offerings in mainstream sizes of 21in and 29in. Its appearance comes ever closer to those of flat panels, with a standing thickness resembling that of LCD sets, thanks to the use of super-slim tubes and structure resetting. From the manufacturer’s 601 Series is the KS29601 slim or ultra-slim tube. The 29in CRT TV set has a membrane switch, multisystem compatibility, multilanguage OSD, side A/V input, component video and S-Video input.
In 2007, Jinpin Electrical Co. Ltd launched seven series of CRT TVs, five of which are available in both standard and slim editions. These models use Toshiba’s T08 super chipset, which promotes better picture and audio quality. Jinpin’s model 29E7 is a 29in CRT TV with the latest Toshiba chassis. For H1 2008, Jinpin plans to launch four new models with slim and super-slim tubes and rotating bases. The units will likely use Philips’ latest UOC Top to provide more function at lower cost.
Foresee Group Co. Ltd sells five 29in CRT TV models, two of which come in slim form factors. The company also manufactures two 21in models with super-slim CRTs. The pure-flat FT2909 slim CRT TV uses either an ST or Philips UOC solution. It has DVB-T tuner support and optional NICAM/A2 stereo. One of the company’s 21in models is the FT2109.
Including support for HD content is also part of CRT TV makers’ efforts to raise the line’s competitiveness with flat-panel displays. Suzhou Luck Electronics Co. Ltd has two HDTV seriesone is available in 28in and the other in 32in. Both can receive standard PAL and NTSC signals as well as digital signals in VGA, SVGA, XGA, 720p and 1080i via a Philips UOC2 HD solution. Suzhou Luck’s slim CRT TVs have screen sizes of 21in and 29in. Model SF2958, a 29in CRT TV available in either normal or pure-flat form factor, can have either a Sanyo, Toshiba or Philips chipset.
Most of the interviewed makers produce CRT TVs from 14in to 34in, with 29in sets accounting for 10 to 15 percent of total output and 34in models comprising 1 to 5 percent.
Low profit margins in 2007 forced China’s CRT suppliers to cut down on production to recoup their losses. This has resulted in CRT TV manufacturers raising product prices due to the material’s short supply, which in turn lead to longer lead times. To avoid this stress, some makers, such as Foresee, are looking to transfer some output into SKD form and buying CRTs from other suppliers.
Other price factors affecting CRT TV prices are the appreciating yuan, amendments to China’s export drawback policy and rising labor costs, as well as issues related to the import policies of different regions. The cost of ICs has remained stable but that of petroleum-based plastic has seen a steady increase.
Overall, CRT TV prices are expected to level off, or even increase by 5 percent this year. At present, standard 29in CRT TVs are priced from $110 to $120, while 34in sets are from $140 to $150. Pure-flat CRT TVs usually cost an additional $5 to $15.
With slim tube costs becoming stable, slim CRT TVs are now priced closer to flat and standard sets. If the trend continues, the slim set would naturally replace flat and standard sets.
Despite declining export figures, CRT is still the most shipped TV technology from China. Eighty percent of exports from Konka are CRT TVs; Foresee has 60 to 70 percent while Suzhou Luck ships 70 percent.
This year, Foresee expects a 20 percent improvement in CRT TV output as it explores new markets such as South America. The maker has a monthly output of up to 60,000 TV sets, all of which are shipped abroad. Four out of five sets are bound for Europe.
Konka recorded a decreased output of 10 million units in 2007, 20 percent of which were exported to Eastern Europe, the Middle East and Africa. The drop was attributed to the March 2007 deadline for all US-bound TV sets to have built-in ATSC tuners. Konka’s shipments to the United States were nearly halved as a direct result of the FCC mandate.
Yet, other companies rely on SKD products to beef up output. Jinpin produces 100,000 to 150,000 finished color TVs per month, 90,000 to 100,000 sets of which are for exports. It makes a further 450,000 to 500,000 SKD kits, shipping 40,000 sets abroad. Ninety-five percent of Jinpin’s exports are OEM and ODM contracts. The company plans to increase output and exports by 15 percent.
CRT TVs account for 70 percent of Suzhou Luck’s output. Last year, the company produced 100,000 units per month, up to 80 percent of which were exported. Its total annual revenue rose by 20 to 30 percent from its 2006 earnings.
Foresee, founded in 2000, has two production facilitiesone in Chuzhou, Anhui province, and the other in Wuxi, Jiangsu provincewith a total land area of 90,000sqm. It plans to build a new factory with four production lines, but this will be mainly for LCD TV production. The company has a program to ensure successful implementation of RoHS directives. Foresee’s R&D department can produce shells for a new unit in 45 days and cores within three months.
Jinpin’s 90,000sqm factory employs 2,500 workers and holds a certification under the ISO 9001 standard. The company’s products have CE, CB, CCC, IRAM, SAA, SASO and RoHS approvals. Jinpin maintains three assembly lines for complete TV sets, another six for SKD sets and a further eight production lines for core panels. Its QC/QA team comprises 80 members. Its 50-member R&D staff is divided into the CRT group and LCD group. The company’s R&D team can release 10 to 20 new sets a year; its area of responsibility includes shapes and cores development.
Suzhou Luck has a 34,000sqm facility with 12 plastic injection machines that can produce items weighing 60g to 10,000g. Its main production lines for 14in to 34in color TVs can churn out 1 million units in CBU form annually. It has a certification under the ISO 9001 standard and its products have CCC, CB, CE and SASO approvals.
Konka has five major TV manufacturing plants in Shaanxi, Dongguan, Anhui, Chongqing and Mudanjiang in Heilongjiang province, with more than 20 production lines. It can achieve a yearly output of 10 million units. It was the first-ever company in China to receive a certification under the ISO 9001 standard. It also has been certified under ISO 14001. Its products carry UL, CSA, FTZ, BS and SAA approvals. Konka has a 300-member R&D team that can release 300 new products a year, about 30 percent of which are CRT TVs.