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Hon Hai denies reports it plans to sell 60-inch TVs cheaply

2012/08/16 22:31:48

Taipei, Aug. 16 (CNA) Hon Hai Precision Industry Co., the world's largest contract electronics maker, denied Thursday media speculation that the company planned to sell 60-inch televisions at a cheap price.

In a six-point statement, Hon Hai took issue with local media reports that Hon Hai planned to sell 60-inch TVs produced at Sharp's plant in Sakai, Japan for US$999 each in the U.S., following the Hon Hai-Sharp alliance.

Hon Hai will not sell the TVs made in "the world's only and most advanced 10th-generation LCD production plant" at a loss, the group said.

It added that the Sakai plant currently does not produce televisions for Sharp.

As for which companies will be working with the Sakai plant to make LCD products, Hon Hai said it adheres to business confidentiality and will not reveal business information about its clients.

As to specifics of TV panels being produced at the Sakai plant, Hon Hai said the sizes, production costs and prices vary in accordance with clients' demands.

Local media also reported that AU Optronics Corp. Chairman Lee Kun-yao criticized Hon Hai's reported plan to sell 60-inch LCDs to employees at a price of NT$40,000 (US$1,334.59) instead of the market price of NT$100,000, saying that Hon Hai was "clearing inventory at fire-sale prices and driving a lot of businesses nuts."

In response, Hon Hai said in the statement that the group has taken "due diligence" before making each investment and said there are no inventory problems or inventory clearances.

The group also said it will continue to use vertical integration and its management expertise to try to lower production cost for the consumers.

(By Chung Jung-feng and Jamie Wang)