In response to the epidemic, the short-term demand in the TV market has been suppressed. At the same time, the epidemic has stimulated the huge business opportunities of working at home and distance teaching, driving the surge in demand for laptops, monitors, and tablet computers. It also tests the production and supply chain of each panel supplier. Dispatching ability. Complete products plus a certain number of manufacturers for each application will have the opportunity for capacity scheduling. In response to the shortage of laptops and tablets, Innolux also mobilized flexible production capacity. Innolux's future strategy will continue to move towards high value-added and high-margin product development and adjustment.
Panel Shuanghu has actively adjusted its product mix in recent years. In response to the collapse of TV panel prices, TV panel revenue accounted for 30% of this year's revenue. Other products such as IT products, as well as industrial and commercial panels, each accounted for approximately 30%. In the second quarter, the demand for IT panels and medical panels surged, and the production capacity of Shuanghu Panel was adjusted elastically, hoping to ease the impact of falling panel prices.
In terms of Innolux's first-quarter product portfolio, mobile phones and commercial products accounted for 34%, portable computers 21%, desktop monitors 9%, and TVs 36%. AUO ’s TV revenues accounted for about 35% of its revenue in the first quarter, monitors accounted for about 14%, and handheld devices (notebooks, tablets, and mobile phones) accounted for about 26% of revenue. As for industrial, commercial, medical, and other applications It accounts for about 25%.
Innolux said that the recent market situation just reflects the importance of the complete product line. Innolux continues to cultivate in various markets such as TVs, monitors, laptops, tablets, smart phones, automotive aerospace, medical industrial control, etc. With considerable scale and balanced development. When the market fluctuates, it has a better ability of flexible scheduling than the same industry. In the planning of TV products, Innolux in each generation factory is equipped with two or more sizes of different sizes for flexible scheduling according to demand.
AUO said that the epidemic has different impacts on various field applications and has a negative impact on automobiles and consumer retail. The housing economy has driven a surge in demand for work at home, sports at home, and school at home. In terms of medical panels, anti-epidemic business opportunities have led to the use of monitors, treatment, and testing equipment in respirators and hospitals. In the past, customers had low stock levels, the epidemic situation increased, and demand increased rapidly. Increasing customer attention to medical panels has increased specifications and quantities. In the education market, electronic whiteboards have the advantages of multiple screens, interaction, sharing, etc. Many schools install in advance of the suspension of classes, and the demand increases.
AUO emphasized that the company's dynamic adjustment of operations, at any time to seize the increased opportunities, so that the impacted products can have good control, and continue to extend the value chain and technical standards, to provide professional, value-added services.