TPV Lands Placements at RadioShack, Costco for AOC Brand of LCD TVs

Production across two lines in a leased facility near Mexicali, Mexico, started with OEM and may eventually extend down to 32W sets, he said. Longer term, TPV will build its own assembly plant in Mexico with a goal of starting production there by late 2009, Velez said. “You are shipping right across the border” rather than from TPV plants in China and “your time to market is better and there are no duties,” Velez said.

In setting up manufacturing in Mexico, TPV is pursuing the template followed by almost every major TV maker that sells product in the U.S. And like major brands, TPV has lofty goals for its own - a five percent market share by 2010, Velez said. The move represents its second attempt to establish a TV brand in the U.S. (CED Feb 10/06 p1). But unlike the effort two years ago, TPV will use AOC only for its 19W to 47W LCD TVs and PC monitors, having dropped the Envision banner. Envision products are expected to be sold off by October, Velez said.

AOC also will be a global brand, unlike the earlier effort where it was used regionally. TPV also recently purchased the Philips PC monitor business (CED July 9 p4) and will use the Philips brand as a step-up from AOC, he said. TPV acquired Philips’ flat-panel and CRT manufacturing facilities in 2005. “We've consolidated the two brands we were marketing,” Velez said. “We did not have the resources to manage two, but now we'll have more resources to manage one.”

As part of the consolidation, TPV has hired product managers for AOC LCD TVs and monitors who will negotiate and discuss product plans with the company’s factories. About 90 percent of TPV’s revenue will continue to come from its OEM business, which assembles sets for Best Buy’s Insignia, as well as Samsung, Sony and others. But AOC will be given a higher profile, having recently secured a distribution agreement with RadioShack for 19W ($269), 26W ($449) and 32W ($569) LCD TVs to replace Emerson’s Scott and Funai’s Sylvania brands, Velez said. RadioShack.com also was carrying a 15W PC monitor on Monday at $99. TPV also will ship a 42W LCD TV to Costco.

In promoting the AOC brand, TPV has shaken up its roster of panel suppliers, emphasizing Chi Mei Optoelectronics for larger sizes and adding Sharp for a 22W monitor. It has curtailed purchases from BOE-Hydis, which once owned 25 percent of TPV, but has struggled financially. A Sharp panel is built into the 2230Fm ($399) that features 1,680x1,050 resolution, 300 candelas and 20,000:1 contrast ratio. TPV also is fielding the 22W 2218Ph monitor ($429), which is designed to compete with Apple displays, as it features a piano-black bezel and polished aluminum cabinet. It has 12,000:1 contrast ratio. TPV will have a 1080p-capable 42W ($999) and 47W ($1,200) LCD TVs by year-end. The 42W has 500 candelas and 6,000:1 contrast ratio.

To avoid competing with TPV’s OEM customers, AOC brand TVs and monitors will seek to stake out unique designs including two-millisecond response times, 4-in-1 memory card readers and USB 2.0 ports. To track TPV’s OEMs, AOC opened an office in Taiwan with a manager who monitors the business to avoid conflicts with customers, Velez said.

TPV also opened a separate PC monitor assembly in Sao Paulo, Brazil, as it dedicated a separate plant in Manaus, Brazil, to TVs, Velez said. TPV also is considering opening a third facility in Brazil, Velez said. TPV will continue with a U.S. headquarters in Fremont, Calif., while Velez maintains a sales office in Miami.

DigitalLife Conference Notebook…

Hasbro’s Tiger Electronics has dropped plans for Mobimals digital monkeys ($14.99) that were designed to interact with a cellphone signal, a spokeswoman said. The monkeys contained 36 games, online codes and animations and were designed to sense a cellphone signal and make facial expressions on its LCD and noises. Hasbro wasn’t able to complete development in time for release this year, but will consider introducing the products in 2009, the spokeswoman said.

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Mattel launched Barbie Girls V.I.P. - a subscription based version of BarbieGirls.com virtual world that carries a $5.99 monthly fee. The subscription-based virtual world offers four times more content than the free BarbieGirls.com site with more games and locations to explore, the company said. As of June, BarbieGirls.com had 14 million registered users, up from 5.5 million last fall, it said.

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FyreTV expects to formally launch its set-top-based adult video service this fall that will supply access to 25,000 titles for a $9.99 monthly fee, company officials said. The set-top, which is leased free, connects to wired ethernet. Titles stream at 1.5 MB, 1.1 MB or 700 kbps, depending on the connection speed. The basic monthly subscription covers 100 minutes of viewing time, with a per minute fee being charged beyond that. The service is designed to allow for 6x, 12x, 24x, 48x and 128x fast-forward and rewind speeds and its remote has “favorites” and “watched history” buttons. Movies from Wicked Pictures, Vivid and others also will be available for purchase for between $1.99 and $24.99, company officials said. Some movies also will be available pre-DVD release for $10.99, company officials said. The service started a beta test last fall with 5,000 users and 7,000 titles, the company said. It has since increased to 17,000 users, the company said. - Mark Seavy