Fun with Data – TV ODMs
The Tv market is highly competitive to say the least and brand competition pushes brands to offload some TV set design and production to OEMs in order to reduce costs. TV set ODMs produced ~76.2m sets in 2022, and inclusive of the four brands that produce for their own brands (Changhong (600839.CH), Skyworth (751.HK), Konka (000016.CH), and Hisense (600060.CH)) ODMs actually saw an increase from the 97.2m sets produced by ODMs in 2021, a 3.5% increase, with 76.2m units coming from non-branded ODMs.
Results for 2022, as indicated in Figure 1 show unit volume ranking and reference y/y growth (blue) or decline (red), and where known, key customers in 2022. A number of ODMs have strong relationships with a relatively small number of customers, which can magnify the impact to those ODMs depending on yearly brand results. TPV’s (000727.CH) ‘house brands’, Philips and AOC represented ~40% of unit volume and poor Philips results in Europe, along with Best Buy house brand (Insignia) and Vizio weakness, caused overall shipments to decline by ~4.2% y/y, and while TPV is expected to see Hisense become its largest outside customer this year, 1Q is expected to see a ~20% decline y/y as ODMs face difficult 1H y/y comparisons. Maojia (pvt), which was acquired by TCL (000100.CH) saw a ~25.8% increase y/y in 2022 as TCL’s aggressive expansion kept utilization higher than most, and BOE VT (200725.CH) saw growth as Xiaomi (1810.HK) its largest customer (~40%) grew its TV business last year.
Results for 2022, as indicated in Figure 1 show unit volume ranking and reference y/y growth (blue) or decline (red), and where known, key customers in 2022. A number of ODMs have strong relationships with a relatively small number of customers, which can magnify the impact to those ODMs depending on yearly brand results. TPV’s (000727.CH) ‘house brands’, Philips and AOC represented ~40% of unit volume and poor Philips results in Europe, along with Best Buy house brand (Insignia) and Vizio weakness, caused overall shipments to decline by ~4.2% y/y, and while TPV is expected to see Hisense become its largest outside customer this year, 1Q is expected to see a ~20% decline y/y as ODMs face difficult 1H y/y comparisons. Maojia (pvt), which was acquired by TCL (000100.CH) saw a ~25.8% increase y/y in 2022 as TCL’s aggressive expansion kept utilization higher than most, and BOE VT (200725.CH) saw growth as Xiaomi (1810.HK) its largest customer (~40%) grew its TV business last year.
TV Set ODM Unit Volume - Source: SCMR LLC, RUNTO
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