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China's top 50 OEMs outpaced 2004 equipment market, says iSuppli

Posted: 21 Feb 2005 ?? ?Print Version ?Bookmark and Share

Keywords:electronics systems? oem? consumer-electronics? tcl? pc?

With electronics systems production in China rising 13 percent to $209.5 billion in 2004, from $185.5 billion in 2003, and China's top 50 OEMs outperforming the market, with a 23 percent year-on-year increase in sales, once-obscure Chinese OEMs are rising up the ranks of the world's makers of electronic equipment, according to iSuppli Corp.

China's top 50 OEMs' system-level production accounted for about 76 percent of all Chinese OEM system output in 2003, and this percentage rose to 83 percent in 2004.

Chinese computer maker Lenovo has gained worldwide attention because of its planned acquisition of IBM's PC business. The move to take majority control over Thomson's television business near the end of 2003 drew attention to consumer-electronics manufacturer TCL.

The table below is a ranking of China's top-50 indigenous OEMs in terms of their gross electronics revenue in 2004 and 2003, according to iSuppli.

Among the top ten Chinese OEMs, telecommunications gear maker Huawei led the pack with a 71.8 percent increase in revenue from 2003 to 2004. Huawei competes with Cisco, Lucent and Alcatel and it is projected that 40 percent of its 2004 revenues were derived from sales outside of China, iSuppli said.

TCL was the second-strongest performer among the top ten, with its sales rising 62.9 percent. The two joint ventures TCL established with Thomson and with Alcatel in April 2004 enabled TCL to emerge as the world's largest TV OEM and as the seventh-largest handset OEM.

- Peter Clarke

Silicon Strategies

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