VIZIO CEO claims the key to its low HDTV prices isn't cheap parts, just business strategy
By Richard Lawler 
posted February 1st 2010 2:57PM
posted February 1st 2010 2:57PM
As of late, VIZIO's been trying to turn around its reputation as simply a cheap HDTV manufacturer to that of a high quality TV maker with great features and low prices and the latest example is CEO William Wang's interview with Nikkei Electronics Asia. countering the opinions of many that its TVs are made of cheap parts that are lower quality and more likely to break he claims "You can't make inexpensive TVs with cheap parts" crediting the ability to keep prices low on its relationships with suppliers, reduced inventory management and smaller staff. Already a leader in U.S. sales, the company is taking aim at markets worldwide, if you're just writing off VIZIO TVs because of brand reputation, this interview and the new 2010 line of LED lit LCDs may both deserve a look.
And Child Labor(C)
Well it seems to be working, my cousin was telling me about a TV he was thinking about buying and he couldn't remember the brand name. He said to me "it was a really nice one, not like a philips or panasonic, maybe a sony or a vizio." It was pretty funny he thought of Vizio as a high end brand.
@knewman
I love my Panasonic Plasma. Everyone that comes over is like ... Wow, this picture is so much better than mine.
I understand why people buy Vizio's and LCDs in general ... because in the store, the LCDs look so much brighter. That's the problem ... I hate it when my LCD monitor is so bright that it strains my eyes ... It is better for text and pictures, but plasmas are so much better for movies, sports and gaming.
And now it's happening again with LED. People don't realize that they are still LCDs and have many of the same problems. I don't need my TV to be a quarter inch thick. I don't look at my TV from the side, I look at it from the front.
@Meekermoloko
Great comment. I'll have to remember that one. It is the same as when wide screens first came out. I kept telling everyone that they weren't wider. They were just shorter. Nobody believed me. But most people's restrictions on the size of their screens for placement in a room are horizontal boundaries, not vertical ones. I know, totally different concept. But yeah, who cares if the TV is .25 inches thick or 2 inches thick. How is the picture?
@glennS Actually, saying a widescreen is wider or shorter in a physical sense is inaccurate. The ratio is different than a fullscreen TV, but the physical size of the TV is entirely dependent on the.....well....physical of the TV itself, obviously. A 65" widescreen TV sure isn't shorter than a 19" fullscreen TV, and a 30" widescreen TV sure isn't wider than an 80" fullscreen TV. Most consumers simply don't understand ratio, which is why, when they see letterboxing, they think they're missing the top and bottom half of the movie. 4:3 vs 3:2 vs 16:9 vs 1.85:1 vs 2.39:1 have been misunderstood by the general public since the beginning of film and it's not going to change anytime soon.
How the mighty have fallen. The name SONY no longer commands a price premium like it used to with Trinitron tubes.
At least Sony is still afloat...Pioneer is the one I'm distraught over.
He's right.
Vizio isn't using "cheap parts" ...
They are simply using "old parts" that are less expensive now.
@Meekermoloko
Of course, maybe with all their profit from their older TVs, they may be switching to newer screens. Only "they" really know.
I still prefer plasma over LEDs anyway. And anyone who watches a film with their dejuddering process (that makes it look like video) bothers me and they deserve their Vizio's.
It's only been the fanboys of other brands who have ever said that Vizio used cheap parts. The fact is Vizio has always used great parts for their TVs. The reason why they were cheaper is because they had a cheaper price point. If you undercut everyone else and move more products you will return with more profits. Sony and the others also have a great product, but they also charged more because they could. People don't realize the mark up on retail items is huge. The cost to make a lot retail products is anywhere from 10-90% of the retail price. Store have to have a mark up this high in order to make a profit. And companies like Sony want more money and it's good for business if they can get it. They did come out a few years ago saying how cheaper TVs was bad for business and for them as it shrinks their profit margin. Sony could cost as cheap Vizio if they wanted to, but they don't. They have their image and prices to keep up. Look at Apple and how cheap their products cost to make and the huge mark up. Apple also still charges the same price for a product they sold a year ago even though the costs for the parts have been cut dramatically. Look at the prices for the systems out now and how cheap it is to build one yourself, same specs.
@Brian
I had a friend over, and she commented on my roommate's 32inch Akai LCD, saying "at least it isn't a Vizio." She had a barrel of trouble with the two she owned, both calling it quits in a matter of two months. If you get lucky, Vizio is great, as you won't have another TV next to it to compare picture at all times, but no one likes broken TV.
My VIZIO went out after less than two years and I am still trying to get it repaired/replaced, so much for extended warranty. And it looks like most of the parts in it are made by LG how good are LG's?
@(Unverified)
Well, I have bought two LG products. A cell phone and a DVD-R.
The cell phone (Vu) has bugs in it. It would get graphic corruption when switching between landscape and portrait mode during web browsing. Occasionally, the phone would crash and I would have to reboot the phone. I also sometimes get dropped calls when I have full bars, but that could be AT&T's service.
The DVD-R clock slowly increases time. It's not that bad, but I do have to reset the clock every couple of months. The bigger issue is that sometimes when I am recording something, there would be an error and then I can't do anything ... I can't eject the disc or even power down until I remove the power cord. This happens with different blank discs, so I know it's the machine and not the media. Luckily, I don't record too much onto disc now anyway, but there are occasions.
Does LG make updates to resolve these issues? ... No. Maybe they're getting better now ... since many blu-ray players have Ethernet ports ... but with phones, I don't see much support from LG unless it's a huge problem. They'll just continue to make more and more phones instead of fix the ones they already sold.
I don't plan on buying any LG products for a while. Seeing that Vizio is made by LG parts makes a lot of sense.
I will say that I do like Vizio's business model. I think it helps make other TV companies bring down their prices faster, but I just don't trust the longevity of their product. There can be problems with any company's product, but Vizio is new, so the risk is higher. This would be a good TV for a kid's bedroom or guest room, but I'll stick to my Panasonic Plasma for my main room.
My grandparents bought a Vizio. Broke in two days. They will never get my money.
Whereas my RCA is 27 years old and still working fine.
I'd like buy a newer RCA, but I can't.
@(Unverified)
Did they try to get the set serviced or replaced?
Replaced of course. Went with a Phillips. I've owned Phillips in the past and never had an issue. No vizio in my house. 2 LG's and a Samsung.
@(Unverified)
Did Vizio or the store even offer to replace the set with another or was it "business as usual"??? I own a Pioneer KURO and Panasonic plasma and couldn't be happier, but I know people who swear by the VIZIO "value".
If your product was made in China, Korea, Indonesia, Vietnam, India... Its gonna brake... Want quality products, buy made in Mexico.
Have a 42" Vizio LCD (SV42XVT) and it's still working great. I bought it around superbowl time last year at Sam's for $800 (normal price was almost $1100 at the time).
No complaints from me.
You pay less for an inferior product. It really is as simple as that.
Vizio claims they use quality parts. Even if that's true, it still doesn't mean they build quality TVs. I can buy the best auto parts in the world and build a really crappy car with them. It's all in the engineering that determines the performance of your product. It starts with quality parts, but it doesn't end there.