Amtran, JVC Sign LCD TV Agreement
In a possible break from a long alliance with Vizio, Amtran Technology said it signed a memorandum of understanding to work with JVC on LCD TVs. Amtran said it will handle TV assembly and JVC will supply technology. The companies will shares sales responsibilities, it said. The partnership will concentrate on the North American market before expanding, including to Asia, Amtran said. The products developed by the venture will be sold under JVC’s brand and hit the market in 2011, Amtran said.
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The new alliance seems to signal reduced reliance by Amtran on Vizio for revenue. Amtran, which owns 23 percent of Vizio, has claimed to assemble 60-70 percent its LCD TVs. Vizio and JVC U.S. officials weren’t available Friday to comment.
JVC, which in 2007 merged with Kenwood, would gain a valuable partner for assembling its TVs. The deal also seems to suggest JVC’s parting with Funai, with which it formed a similar partnership in 2008 (CED Jan 31/08 p3). JVC’s agreement with Funai resembled the one being considered with Amtran. A JVC plant in Mexico was to supply Funai with LCD TVs to sell in North America, largely through Wal-Mart. Funai’s plant in Poland was to provide JVC with sets for Europe. The companies planned to team up to develop LCD TVs for worldwide sales under the JVC brand. JVC has since moved to outsource its TV production, having last opened a plant in Tijuana, Mexico, in 2004 to assemble D-ILA-based rear projection TVs (CED June 28/04 p3).
Meanwhile, Amtran Technology’s Q2 net profit improved to $15.3 million, as revenue rose 8.6 percent from the previous quarter to $449 million. First-half revenue was $862.1 million on net profit of $27.1 million. Amtran’s first-half profit was driven by higher average selling prices and a 10 percent increase in shipments from the previous period, the company said. During the quarter, 32-, 37- and 42-inch TVs accounted for 77 percent of total shipments, and 47- and 55-inch were responsible for less than 20 percent, the company said. Amtran shipped 1.6 million LCD TVs and 200,000 PC monitors in the first half. Amtran’s Q3 LCD TV deliveries are expected to rise 10 percent sequentially to 1 million units, it said.