At this time when the flat panel industry is hitting a bottom, it is the best of times for AU Optronics (AUO) to move forward its value transformation process and develop innovative display solutions to tap emerging niche markets, according to company president Frank Ko.
As the application markets for display solutions are bound to become more diverse along with the development of AI and IoT industries, AUO is to optimize its technology advantage to roll out products catering to the markets, such as those for verticalized industrial applications, Ko said at the company latest investors meeting.
Buoyed by its established policy for value transformation over the past years, AUO has also seen its shipments of niche-market and non-consumer electronics products becoming stable sources of net income, and therefore, it will continue to improve its product mix based on the current path, Ko added.
It will also leverage its technology advantage and flexibility of its management to undertake the production of highly customized products with diverse designs in small volumes.
And since AUO’s inventory levels and debt-to-equity ratio both remain healthy, it is also a good time for the company to gear up its smart manufacturing capability and further enhance its cash flow management, Ko stressed.
Looking into sales of TV products for fourth-quarter 2019, Ko expects TV shipments in North America to stay on a growth track, driven by brand and channel sales. In Western Europe, TV sales were down in the third quarter, but replacement demand for large-size models still exists there.
Brand vendors and channel operators will continue to push sales of large-size and premium TV models in the fourth quarter, with the average size of TVs to continue growing, Ko said. Digitimes