Monday, April 04, 2005

Further Proof of Large Format TV Commoditization

Excerpts from Article that explains the asian domination of manufacturing and the methods Dell and Hewlett Packard are taking to take advantage of a projected high-volume flat panel tv business. As you all know - lower prices translate into continued adoption of digital signage.

The surge in investment and proliferation of suppliers have driven panel prices down to levels unthinkable even two or three years ago. That has opened the door to a set of competitors the Asians never expected to face: Dell Inc. (NasdaqNM: DELL), Hewlett-Packard Co., (NYSE: HPQ) and others in North America. They are making a concerted push in flat TVs, sourcing the panels from Asia and using the same global supply-chain wizardry they have employed so effectively in PCs, printers, and other products.

The return of American TV brands sets the stage for an epic battle between the forces of commoditization and manufacturing innovation. In the first camp, Dell and HP are already two of the world's biggest buyers of flat-panel monitors, semiconductors, and other parts for PCs, so they have great leverage over the same Asian suppliers when it comes to sourcing thin-screen televisions.

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