----

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| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------------|

| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------------|

| California                                                     |   | 95-4249240                           |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |

| 28040 West Harrison Parkway, Valencia, California |   | 91355-4162 |
|---------------------------------------------------|--------|------------|
| (Address of principal executive offices)          |   | (Zip Code) |

| Large accelerated filer o |   | Accelerated filer o |   | Non-accelerated filer o(Do not check if a smaller reporting company) |   | Smaller reporting company x |
|---------------------------|--------|---------------------|--------|----------------------------------------------------------------------|--------|-----------------------------|

| Class                                 |   | Outstanding on October 29, 2010 |
|---------------------------------------|--------|---------------------------------|
| Class A common stock, $.001 par value |   | 4,777,144                       |
| Class B common stock, $.001 par value |   | 762,612                         |

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| TAITRON COMPONENTS INCORPORATED |
|---------------------------------|
| FORM 10-Q                       |
| September 30, 2010              |
| INDEX                           |

| Page                           |
|--------------------------------|
| PART I - FINANCIAL INFORMATION |   |
|                           |   |   |
| Item 1.                        | Financial Statements (unaudited) |   |
|                           | Condensed Consolidated Balance Sheets at September 30, 2010 and December 31, 2009 | 1 |
|                           | Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2010 and 2009 | 2 |
|                           | Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2010 and 2009 | 3 |
|                           | Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2010 and 2009 | 4 |
|                           | Notes to Condensed Consolidated Financial Statements | 5 |
| Item 2.                        | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 8 |
| Item 3.                        | Quantitative and Qualitative Disclosures About Market Risk | 10 |
| Item 4.                        | Controls and Procedures | 10 |
|                           |   |   |
| PART II - OTHER INFORMATION    |   |
|                           |   |   |
| Item 1.                        | Legal proceedings | 11 |
| Item 2.                        | Unregistered Sales of Equity Securities and Use of Proceeds | 11 |
| Item 3.                        | Defaults Upon Senior Securities | 11 |
| Item 4.                        | [Removed and Reserved] | 11 |
| Item 5.                        | Other Information | 11 |
| Item 6.                        | Exhibits | 11 |
|                           | Signatures | 11 |

----

Index

PART 

ITRON

|                                                                                                                     |   | September 30, |       |   | December 31, |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|--------------------|------------|--------|--------------|--------|
|                                                                                                                     |   | 2010               |       |   | 2009         |   |
| Assets                                                                                                                   |   | (Unaudited)        |       |   |         |   |
| Current assets:                                                                                                          |   |               |       |   |         |   |
| Cash and cash equivalents                                                                                                |   | $                  | 3,304,000  |   |         | $      | 2,768,000 |   |
| Restricted cash (Note 4)                                                                                                 |   |               | 200,000    |   |         |   | 100,000 |   |
| Trade accounts receivable, net                                                                                           |   |               | 842,000    |   |         |   | 621,000 |   |
| Inventory, net                                                                                                           |   |               | 12,409,000 |   |         |   | 12,307,000 |   |
| Prepaid expenses and other current assets                                                                                |   |               | 60,000     |   |         |   | 245,000 |   |
| Total current assets                                                                                                     |   |               | 16,815,000 |   |         |   | 16,041,000 |   |
| Property and equipment, net                                                                                              |   |               | 5,020,000  |   |         |   | 5,135,000 |   |
| Other assets (Note 5)                                                                                                    |   |               | 284,000    |   |         |   | 244,000 |   |
| Total assets                                                                                                             |   | $                  | 22,119,000 |   |         | $      | 21,420,000 |   |
|                                                                                                                     |   |               |       |   |         |   |   |   |
| Liabilities and Shareholders’ Equity                                                                               |   |               |       |   |         |   |   |   |
| Current liabilities:                                                                                                     |   |               |       |   |         |   |   |   |
| Trade accounts payable                                                                                                   |   | $                  | 988,000    |   |         | $      | 615,000 |   |
| Accrued liabilities                                                                                                      |   |               | 343,000    |   |         |   | 303,000 |   |
| Current portion of long-term debt (Note 6)                                                                               |   |               | 1,500,000  |   |         |   | - |   |
| Total current liabilities                                                                                                |   |               | 2,831,000  |   |         |   | 918,000 |   |
| Long-term debt (Note 6)                                                                                                  |   |               | -          |   |         |   | 1,000,000 |   |
| Total liabilities                                                                                                        |   |               | 2,831,000  |   |         |   | 1,918,000 |   |
|                                                                                                                     |   |               |       |   |         |   |   |   |
| Commitments and contingencies (Notes 6, 8 and 12)                                                                        |   |               |       |   |         |   |   |   |
|                                                                                                                     |   |               |       |   |         |   |   |   |
| Shareholders’ equity:                                                                                              |   |               |       |   |         |   |   |   |
| Preferred stock, $0.001 par value.  Authorized 5,000,000 shares; None issued or outstanding                    |   |               | -          |   |         |   | - |   |
| Class A common stock, $0.001 par value.  Authorized 20,000,000 shares; 4,777,144 shares issued and outstanding |   |               | 5,000      |   |         |   | 5,000 |   |
| Class B common stock, $0.001 par value.  Authorized, issued and outstanding 762,612 shares                     |   |               | 1,000      |   |         |   | 1,000 |   |
| Additional paid-in capital                                                                                               |   |               | 10,603,000 |   |         |   | 10,594,000 |   |
| Accumulated other comprehensive income                                                                                   |   |               | 95,000     |   |         |   | 96,000 |   |
| Retained earnings                                                                                                        |   |               | 8,372,000  |   |         |   | 8,587,000 |   |
| Minority interest in subsidiary                                                                                          |   |               | 212,000    |   |         |   | 219,000 |   |
| Total shareholders’ equity                                                                                         |   |               | 19,288,000 |   |         |   | 19,502,000 |   |
| Total liabilities and shareholders’ equity                                                                         |   | $                  | 22,119,000 |   |         | $      | 21,420,000 |   |

----

Index

O

|                                                                       |   | Three Months Ended September 30, |      |   | Nine Months Ended September 30, |   |
|----------------------------------------------------------------------------|--------|----------------------------------|-----------|--------|---------------------------------|--------|
|                                                                       |   | 2010                             |      |   | 2009                            |   |   | 2010 |   |   | 2009 |   |
|                                                                       |   | (Unaudited)                      |      |   | (Unaudited)                     |   |   | (Unaudited) |   |   | (Unaudited) |   |
|                                                                       |   |                             |      |   |                            |   |   |   |   |   |   |   |
| Net sales                                                                  |   | $                                | 2,035,000 |   |                            | $      | 1,504,000 |   |   | $ | 5,461,000 |   |   | $ | 4,131,000 |   |
| Cost of goods sold                                                         |   |                             | 1,412,000 |   |                            |   | 1,127,000 |   |   |   | 3,820,000 |   |   |   | 3,167,000 |   |
| Gross profit                                                               |   |                             | 623,000   |   |                            |   | 377,000 |   |   |   | 1,641,000 |   |   |   | 964,000 |   |
|                                                                       |   |                             |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative expenses                               |   |                             | 688,000   |   |                            |   | 591,000 |   |   |   | 1,936,000 |   |   |   | 1,828,000 |   |
| Operating loss                                                             |   |                             | (65,000   | )      |                            |   | (214,000 | ) |   |   | (295,000 | ) |   |   | (864,000 | ) |
|                                                                       |   |                             |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense, net                                                      |   |                             | (12,000   | )      |                            |   | (4,000 | ) |   |   | (32,000 | ) |   |   | (7,000 | ) |
| Other income, net                                                          |   |                             | 27,000    |   |                            |   | 43,000 |   |   |   | 106,000 |   |   |   | 91,000 |   |
| Loss before income taxes                                                   |   |                             | (50,000   | )      |                            |   | (175,000 | ) |   |   | (221,000 | ) |   |   | (780,000 | ) |
|                                                                       |   |                             |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Income tax expense                                                         |   |                             | (2,000    | )      |                            |   | (1,000 | ) |   |   | (5,000 | ) |   |   | (3,000 | ) |
|                                                                       |   |                             |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                   |   |                             | (52,000   | )      |                            |   | (176,000 | ) |   |   | (226,000 | ) |   |   | (783,000 | ) |
| Net loss attributable to noncontrolling interest in subsidiary             |   |                             | -         |   |                            |   | (6,000 | ) |   |   | (11,000 | ) |   |   | (20,000 | ) |
| Net loss attributable to Taitron Components Inc.                           |   | $                                | (52,000   | )      |                            | $      | (170,000 | ) |   | $ | (215,000 | ) |   | $ | (763,000 | ) |
|                                                                       |   |                             |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Net loss per share:  Basic & Diluted                         |   | $                                | (0.01     | )      |                            | $      | (0.03 | ) |   | $ | (0.04 | ) |   | $ | (0.14 | ) |
|                                                                       |   |                             |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding:  Basic & Diluted |   |                             | 5,539,756 |   |                            |   | 5,539,756 |   |   |   | 5,539,756 |   |   |   | 5,539,756 |   |

----

Index

TAITRON 

|                                                                              |   | Three Months Ended September 30, |    |   | Nine Months Ended September 30, |   |
|-----------------------------------------------------------------------------------|--------|----------------------------------|---------|--------|---------------------------------|--------|
|                                                                              |   | 2010                             |    |   | 2009                            |   |   | 2010 |   |   | 2009 |   |
|                                                                              |   | (Unaudited)                      |    |   | (Unaudited)                     |   |   | (Unaudited) |   |   | (Unaudited) |   |
|                                                                              |   |                             |    |   |                            |   |   |   |   |   |   |   |
| Net loss                                                                          |   | $                                | (52,000 | )      |                            | $      | (176,000 | ) |   | $ | (226,000 | ) |   | $ | (783,000 | ) |
|                                                                              |   |                             |    |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Other Comprehensive (loss)income:                                                 |   |                             |    |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                                           |   |                             | -       |   |                            |   | (6,000 | ) |   |   | (1,000 | ) |   |   | - |   |
|                                                                              |   |                             |    |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive loss                                                                |   |                             | (52,000 | )      |                            |   | (182,000 | ) |   |   | (227,000 | ) |   |   | (783,000 | ) |
|                                                                              |   |                             |    |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income(loss) attributable to noncontrolling interest in subsididary |   |                             | 1,000   |   |                            |   | (7,000 | ) |   |   | (9,000 | ) |   |   | (19,000 | ) |
|                                                                              |   |                             |    |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive loss attributable to Taitron Components Inc.                        |   | $                                | (53,000 | )      |                            | $      | (175,000 | ) |   | $ | (218,000 | ) |   | $ | (764,000 | ) |

----

Index

RO

|                                                                            |   | Nine Months Ended September 30, |      |
|---------------------------------------------------------------------------------|--------|---------------------------------|-----------|
|                                                                            |   | 2010                            |      |   | 2009 |   |
|                                                                            |   | (Unaudited)                     |      |   | (Unaudited) |   |
| Cash flows from operating activities:                                           |   |                            |      |   |   |   |
| Net loss                                                                        |   | $                               | (215,000  | ) |   | $ | (763,000 | ) |
|                                                                            |   |                            |      |   |   |   |   |   |
| Adjustments to reconcile net loss to net cash provided by operating activities: |   |                            |      |   |   |   |   |   |
| Depreciation and amortization                                                   |   |                            | 168,000   |   |   |   | 165,000 |   |
| Provision for sales returns and doubtful accounts                               |   |                            | 18,000    |   |   |   | 39,000 |   |
| Stock based compensation                                                        |   |                            | 9,000     |   |   |   | 20,000 |   |
| Noncontrolling interest in subsidiary                                           |   |                            | (7,000    | ) |   |   | (19,000 | ) |
| Changes in assets and liabilities:                                              |   |                            |      |   |   |   |   |   |
| Restricted cash                                                                 |   |                            | (100,000  | ) |   |   | (100,000 | ) |
| Trade accounts receivable                                                       |   |                            | (239,000  | ) |   |   | 215,000 |   |
| Inventory                                                                       |   |                            | (102,000  | ) |   |   | 1,313,000 |   |
| Prepaid expenses and other current assets                                       |   |                            | 185,000   |   |   |   | 100,000 |   |
| Trade accounts payable                                                          |   |                            | 373,000   |   |   |   | (415,000 | ) |
| Accrued liabilities                                                             |   |                            | 40,000    |   |   |   | (13,000 | ) |
| Total adjustments                                                               |   |                            | 345,000   |   |   |   | 1,305,000 |   |
| Net cash provided by operating activities                                       |   |                            | 130,000   |   |   |   | 542,000 |   |
|                                                                            |   |                            |      |   |   |   |   |   |
| Cash flows from investing activities:                                           |   |                            |      |   |   |   |   |   |
| Acquisition of property & equipment                                         |   |                            | (53,000   | ) |   |   | (43,000 | ) |
| Other assets                                                                    |   |                            | (40,000   | ) |   |   | (19,000 | ) |
| Net cash used in investing activities                                           |   |                            | (93,000   | ) |   |   | (62,000 | ) |
|                                                                            |   |                            |      |   |   |   |   |   |
| Cash flows from financing activities:                                           |   |                            |      |   |   |   |   |   |
| Borrowings on notes payable                                                     |   |                            | 500,000   |   |   |   | 500,000 |   |
| Payments on notes payable                                                       |   |                            | -         |   |   |   | (421,000 | ) |
| Dividend payments                                                               |   |                            | -         |   |   |   | (276,000 | ) |
| Net cash provided by (used in) financing activities                             |   |                            | 500,000   |   |   |   | (197,000 | ) |
| Impact of exchange rates on cash                                                |   |                            | (1,000    | ) |   |   | - |   |
|                                                                            |   |                            |      |   |   |   |   |   |
| Net increase in cash and cash equivalents                                       |   |                            | 536,000   |   |   |   | 283,000 |   |
| Cash and cash equivalents, beginning of period                                  |   |                            | 2,768,000 |   |   |   | 1,762,000 |   |
| Cash and cash equivalents, end of year                                          |   | $                               | 3,304,000 |   |   | $ | 2,045,000 |   |
|                                                                            |   |                            |      |   |   |   |   |   |
| Supplemental disclosures of cash flow information:                              |   |                            |      |   |   |   |   |   |
| Cash paid for interest                                                          |   | $                               | 34,000    |   |   | $ | 23,000 |   |
| Cash paid for income taxes, net                                                 |   | $                               | 7,000     |   |   | $ | 1,000 |   |

----

Index

A

----

Index

|                        |   | September 30, |    |   | December 31, |   |
|-----------------------------|--------|--------------------|---------|--------|-------------------|--------|
|                        |   | 2010               |    |   | 2009              |   |
|                        |   | (Unaudited)        |    |   |              |   |
|                        |   |               |    |   |              |   |
| Investment in securitites   |   | $                  | 68,000  |   |              | $      | 68,000 |   |
| Investment in joint venture |   |               | 147,000 |   |              |   | 147,000 |   |
| Other                       |   |               | 69,000  |   |              |   | 29,000 |   |
| Other Assets                |   | $                  | 284,000 |   |              | $      | 244,000 |   |

|                                    |   | September 30, |       |   | December 31, |   |
|-----------------------------------------|--------|--------------------|------------|--------|-------------------|--------|
|                                    |   | 2010               |       |   | 2009              |   |
|                                    |   | (Unaudited)        |       |   | (Unaudited)       |   |
|                                    |   |               |       |   |              |   |
| Secured credit facility - related party |   |               | 1,500,000  |   |              |   | 1,000,000 |   |
| Less current portion                    |   |               | (1,500,000 | )      |              |   | - |   |
| Long-term debt, less current portion    |   | $                  | -          |   |              | $      | 1,000,000 |   |

----

Index

|                              |   | Number of Shares |    |   | Weighted Average Exercise Price |   |   | Weighted Average Years Remaining Contractual Term |   |   | Aggregate Intrinsic Value |   |
|-----------------------------------|--------|------------------|---------|--------|---------------------------------|--------|--------|---------------------------------------------------|--------|--------|---------------------------|--------|
|                              |   |             |    |   |                            |   |   |                                              |   |   |                      |   |
| Outstanding at December 31, 2009  |   |             | 395,500 |   |                            | $      | 1.75   |                                              |   |   | 4.3                       |   |   | $ | 19,000 |   |
| Granted                           |   |             | 2,000   |   |                            | $      | 1.27   |                                              |   |   |                      |   |   |   |   |   |
| Forfeited                         |   |             | (32,000 | )      |                            | $      | 3.19   |                                              |   |   |                      |   |   |   |   |   |
| Outstanding at September 30, 2010 |   |             | 365,500 |   |                            | $      | 1.62   |                                              |   |   | 3.7                       |   |   |   | 10,100 |   |
| Exercisable at September 30, 2010 |   |             | 315,499 |   |                            | $      | 1.69   |                                              |   |   | 3.2                       |   |   |   | 4,900 |   |

----

Index

te

----

Index

----

Index

em

em

----

Index

e

tem

m 

te

Ite

m 

| ExhibitNumber |   | Description of Document                                                                                                                                |
|---------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                   |
| 31.1 *        |   | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                    |
| 31.2 *        |   | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                    |
| 32 *          |   | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 USC. Section 1350). |
| *             |   | Filed herewith.                                                                                                                                        |

IGN

|                               | TAITRON COMPONENTS INCORPORATED       |
|------------------------------------|---------------------------------------|
|                               |                                  |
| Date:  November 15, 2010 | /s/ Stewart Wang                      |
|                               | Stewart Wang,                         |
|                               | Chief Executive Officer and President |
|                               | (Principal Executive Officer)         |
|                               |                                  |
|                               | /s/ David Vanderhorst                 |
|                               | David Vanderhorst                     |
|                               | Chief Financial Officer and Secretary |
|                               | (Principal Financial Officer)         |

----