Lite-On IT Corp. Wins HP’s Digital Photo Frame Contract
From EMS Now (The Global Source for the Electronics Manufacturing Industry) comes this information about Lite-On IT Corp.
“Lite-On IT Corp., the largest maker of optical-disc drives in Taiwan, recently announced that it won HP’s order for digital photo frames and is scheduled to begin shipment the first batch to the new customer in the third quarter.
Lite-On claimed that it aims to deliver about two million digital photo frames this year, including items shipped on both own-brand and original equipment manufacturing (OEM) bases, making the firm world’s largest such supplier.
Currently, Lite-On contracts local Action Electronics Co., Ltd. to produce all of its digital photo frames, the small- and medium-size thin film transistor-liquid crystal display (TFT-LCD) panels of which are supplied by local Chunghwa Picture Tubes, Ltd. (CPT), the No. 3 large-size TFT-LCD panel manufacturer on the island.
Industry sources said that the global digital photo frame market has been heating up and attracting more and more big international brands to jump onto the bandwagon. HP is scheduled to announce its entry into the market soon at its American headquarters and plans to jointly hold a press conference with Lite-On in early August.
HP targets to ship 500,000 digital photo frames this year, but the ordered volume would be adjusted according to the market response.
Lite-On has been maintaining a close relationship with HP, which contracted the Taiwan partner to produce its first high-definition (HD)-DVD drive. Industry sources analyzed that HP tied up with Lite-On in digital photo frame business in a bid to accelerate its market entry, while Lite-On contracted Action to turn out such products based also on concerns for on-time delivery.
Lite-On also plans to launch own-brand digital photo frame products. The company said that it aims to ship about two million units of such product this year, accounting for about 20% of the global demand.
The Royal Philips Electronics of the Netherlands shipped about 500,000 digital photo frames in 2006, and the firm’s shipment in the first half already reached last year’s total. Philips said that it expects to deliver about 1.5 million units this year.”
