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June 28, 2017

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World Cup will boost Taiwan's flat-screen trade: report

TAIPEI--The upcoming 2014 FIFA World Cup is expected to encourage consumers to replace their old TVs with ultra-high definition (HD) ones, a move that could give a boost to Taiwan's 4K2K panel shipments, a research report said yesterday.

In the report, market information advisory firm DisplaySearch said the World Cup, scheduled to be held in Brazil June 12-July 13, is expected to find many football fans looking for the clear images available from ultra-HD TVs.

DisplaySearch said that Taiwanese flat-screen suppliers Innolux Corp. (群創) and AU Optronics Corp. (友達光電), which have taken the lead in the global 4K2K TV-screen market, are expected to benefit most from such an uptrend.

Innolux is the pioneer in the world in unveiling ultra-HD panels for TV production to the market, while AUO has been playing catch-up by offering large-sized ultra-HD displays ranging between 42 inches and 65 inches, analysts said.

The two companies are expected to benefit from an increase in ultra-HD displays, which commend a higher profit margin, to strengthen their bottom lines at a time when the global flat-screen market still suffers a supply glut and manufacturers have witnessed their pricing power squeezed, the analysts added.

In an earlier research report, DispaySearch predicted that Innolux and AUO could grasp a combined 58 percent stake in the world's 4K2K-panel market in 2014.

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