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Walmart Acquires Vizio, Set to Overtake Samsung as the Largest TV Brand in the US
February 22, 2024 | TrendForceEstimated reading time: 2 minutes
US retail giant Walmart announced on February 20, that it has acquired smart TV brand Vizio for US$2.3 billion, aiming to accelerate the growth of its advertising business: Walmart Connect. Since its launch in 2021, Walmart Connect has seen double-digit annual growth in both its online and offline retail media advertising ventures. Vizio has been expanding its device ecosystem and its SmartCast TV OS, boasting over 18 million active users, according to TrendForce.
The platform’s net revenue reached approximately $156 million, with SmartCast’s ARPU sitting at $31.55—a 14% YoY increase. This growth has contributed to a 27% annual increase in advertising revenue, serving as a primary driver for the acquisition. TrendForce highlights that Walmart’s proprietary TV brand, ONN, currently operates on the Roku TV platform. A complete shift to SmartCast could forgo the need for additional platform licensing fees, potentially leading to higher advertising revenue gains.
ONN: On the rise to become America’s second-largest TV brand amid economic inflation
High inflation in the US last year tightened consumer budgets, turning budget-friendly, high-value products into market darlings. Walmart responded by launching an array of affordable models, including a 32-inch TV at $98, a 50-inch at $198, and a 65-inch for $398. These models became best-sellers, propelling ONN’s US market share to 13.7%—a growth of 3.7 percentage points.
This surge has helped ONN surpass TCL, Vizio, LG, and Hisense to secure its position as the second-largest TV brand in the US. Although Vizio’s market share dropped to 10.4% last year, Walmart’s acquisition is expected to propel it past Samsung, making it the largest TV brand in the US. This year, the collaboration between ONN and Vizio could break into the top five in global TV shipments.
Acquisition winners: Panel maker-Innoux and ODM-AMTC
The merger benefits a network of contract manufacturers and panel makers; nearly 80% of Vizio’s production is split among Innolux, BOEVT, and AMTC, while around 60% of ONN’s production is handled by AMTC, followed by Changhong and KTC. Post-acquisition, AMTC is expected to secure nearly 40% of the orders—becoming the largest ODM—with Innolux, BOEVT, and AMTC following at 15%, 14%, and 10%, respectively.
ONN offers its TVs at retail prices that are, on average, 20–25% lower than Vizio’s. This pricing strategy poses a challenge for Innolux, Vizio’s main ODM, which is grappling with low-profit margins for ODMs, minimal scope for reducing panel prices, and overcapacity. Nonetheless, Innolux could see a boost in panel shipments, especially for ONN’s popular 32-inch and 50-inch models. Additionally, if the US imposes higher tariffs on TVs imported from China, Innolux’s manufacturing facilities in Taiwan could gain a competitive advantage.
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Using AI to Redefine Productivity
05/15/2024 | Nolan Johnson, SMT007 MagazinePlato Systems, a machine perception company spun out of Stanford University, employs AI and video data to analyze and optimize the human component in manufacturing. Initially focused on semiconductors, Plato Systems has expanded into EMS manufacturing. Co-founder and CEO Amin Arbabian, along with product advisor Anders Holden and head of growth Luis Vidal, discuss their approach to changeover optimization and its impact on productivity in the industry. They’ve also included customer Raj Vora in the conversation.
Saki Set to Highlight Cutting-Edge Inspection Technology at SMTConnect 2024
05/15/2024 | Saki CorporationSaki Corporation, an innovator in the field of automated optical and X-ray inspection equipment, will be exhibiting at SMTConnect 2024 in Nuremberg, Germany from June 11-13. As a key highlight of the Selecs booth #235 in Hall 4, Saki will be showcasing its unique range of automated inspection solutions including the award-winning X-ray Automated Inspection System (AXI) and innovative ‘One Programming’ and AI Solutions Features.
Peters: Casting Compound Perfectly Protects Electronics from Overheating
05/15/2024 | PetersWith ELPECAST® VU 4545/101, Peters has recently added a casting compound to its product portfolio that is characterised by particularly high thermal conductivity.
Avnet to Exhibit at the 2024 Embedded Vision Summit
05/14/2024 | AvnetAvnet’s exhibit plans for the 2024 Embedded Vision Summit include new development kits supporting AI applications.
Foxconn Announces Q1 2024 Financial Results
05/14/2024 | Foxconn ElectronicsIn the January-March quarter revenue hit NT$1.324 trillion, with key profit margins all improving. Earnings per share for the first three months of 2024 reached NT$1.59.