Frank_Zapinski

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    • Mon Feb 25th 01:00 AM | Rating: 0 0
      Commented on:
      Syntax-Brillian Losing North American Market Share
      I am one of the Manufacturer's Representatives for SBC, and I can tell you that the company does sell every TV they manufacture. My personal frustration is that I cannot supply my customers with quantity that meets their demand. This shortage was caused by a shortage of LCD panels in the third and fourth quarter, and continues today. The sizes most impacted by these shortages are the 26", and those that are/were are 32" and 37", the three sizes that drive the unit volume in the category.

      SBC's $250 Million loan/investment capital that they received came on October 31, well after buying decisions for the 4th quarter had been made. Additionally, panels are allocated by panel manufacturers (there are four major suppliers of Grade A LCD panels, Samsung; LPL-Philips, Sharp and CMO), and in the case of shortages, it is difficult to build market share when you are competing against your suppliers (who also sell TV's,)... Samsung and Sony are in Partnership with their LCD manufacturing plant.

      SBC/Olevia has invested in a domestic assembly/manufacturing facility in the USA. Presently the 37" and 42" sizes are being manufactured at this facility. Soon all sizes +37" will be assembled/manufactured in this facility. This is important because this facility allows for significant reduction in freight costs, duty and import taxes.

      Also, compare the features of like Olevia products to those manufactured by Vizio, and you will see that Olevia is in most cases significantly better featured, thus offering a much better value for the consumer.

      As the economy continues to slow, manufacturers like SBC/Olevia and Vizio will continue to thrive, more panels will become available because consumers will drop from the Tier l brands to the Tier ll brands. Olevia will take some share from Vizio and Westinghouse. Olevia, like Vizio is strategically promoted to sports fans, and viewers of highly targeted cable TV shows.

      Sure there is cause to worry. There are lots of factors that could have a negative impact on SBC, yet on the other hand, there are also significant opportunities as this brand is NOT yet in distribution with Wal-Mart/Sam's Club, Best Buy or Costco. If Wal-Mart for example decided to support the brand, it is possible that the company's annual sales could/would double.

      I suppose the best advice is to look at this company from all-angles and consider they have an emerging brand name in a market that likely will be driven by Tier ll suppliers because of the economy slowing.
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