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Analysis of 65-inch Premium TV Price Trends in the First Quarter of 2022

We analyzed the prices of 65-inch TVs of Samsung Electronics’ QLED TVs, OLED TVs from LG Electronics and Sony, and LG Electronics’ QNED TVs until March 2022.

The models we investigated at Samsung Electronics were 4K high-end model QN90A, 4K entry-level models QN85A and QN80A, and 8K models QN800A and QN900A. The models at LG Electronics were OLED TVs A1, C1, and G1 models and QNED TVs QN90UP and QN99UP. The models at Sony Electronics were OLED TV XR65A80J and XR65A90J.

The prices of Samsung Electronics’ 4K models QN90A, QN85A, and QN80A were $2600, $2200, $1700, respectively and the 8K models QN900A and QN800A were $5000 and $3500, respectively. The launch prices of LG Electronics’ OLED TVs A1, C1, and G1 were $2000, $2300, and $3000, respectively while the QNED TVs QNED90UP and QNED99UP were $1600 and $2700, respectively. Sony’s OLED TVs XR65A80J and XR65A90J were priced at $2800 and $4000, respectively.

 

As of March, the highest-priced 65-inch premium TV model was Sony’s XR65A90J. The lowest-priced model was Samsung Electronics’ QN65QN80A.

The prices of most of Samsung Electronics’ products have been falling since December. As of March, Samsung Electronics’ 80A, 85A, and 90A models are priced at $150, $200, and $500 lower than LG Electronics’ A1, C1, and G1 models, respectively, to induce consumption.

The price of LG Electronics’ OLED A1 and G1 models did not change after the last $100 price reduction in January and the C1 model has maintained the price of $1800 since October 2021. The price of LG Electronics’ QNED90UP did not change and the QNED99UP maintained a price of $2500, down $200 from its launch price.

Sony’s XR65A80J, which had dropped to $1800 in October 2021, recovered to $2000 in December and has maintained it until March. The XR65A90J has been steadily dropping in price since December 2021, forming a price of $3000 in March.

 

55 inch and 65 inch OLED TV prices proximity to premium LCD TV

Recently, Sony’s 65 inch OLED TV, XBR65A1E, is price at US$ 300 more than Samsung’s QN65Q7 on the Best Buy basis. Prices of LED TV and LCD TV are becoming increasingly competitiveness in the premium TV market.

As of January 16, Best Buy compares the price of OLED TVs between LG’s C8 series, Sony’s A1E series and Samsung’s Q7F series.

<55 inch premium TV price comparison>

LG’s OLED 55C8 prices dropped 47% from March 2018 to US$ 1,700, which is only US$ 200 higher than Samsung’s QN55Q7.

<65 inch premium TV price comparison>

In the 65 inch TV market, LG’s OLED65C8 price dropped 30% from March 2018 to US$ 2,700, while Sony fell 40% to US$ 2,500, which is higher than Samsung’s QN65Q7 by US$ 500 and US$ 300. The prices gap has been greatly reduced.

In the premium TV market, OLED TVs are rapidly catching up with LCD TV prices because LG Display’s OLED production yield stabilization is the biggest factor.

LG Display is currently constructing Gen8 OLED lines in Guangzhou and Gen10.5 lines in Paju. As a result, the production of large size OLED will increase further, and the OLED TV market will become more prominent in the premium TV market.

In Premium TV market, OLED portion is growing.

Following Bang & Olufsen and SONY, Philips’ OLED TV was launched in Korea on June 11, 2018.

Philips’ OLED TV, applied with LG Display’s OLED panel, is available in two models; 55 – inch and 65 – inch. It features a quad – core CPU, HDR 10, Dolby Vision and DTS surround.

<Philips OLED TV, Source: Philips>

In coming September, Germany’s Loewe plans to launch three (bild5, bild7, bild7 edition) 65-inch OLED TVs using LG Display’s panel, and also Hisense is scheduled to release OLED TV this month.

Especially, when Hisense, which is the leader in the Chinese TV market, releases OLED TVs, it is expected to enhance the awareness about OLED TV in China as well as increase the portion of OLED in the premium TV market.

In April, Kim Sang-don, CFO of LG Display, said in the conference call “The number of existing OLED camps was expanded to 15 from 13, adding two. LG Display will actively respond to increasing market demand by expanding productivity through the reduction of tack time and by converting Chinese fab and, if necessary, domestic LCD fab to OLED fab.”

In the ‘OLED/Display comprehensive seminar’ held by UBI Research, So Hyun-chul, director of Shinhan Financial Investment, said that Sony ranked the first in the premium TV market in 12 years and Sony’s share price rose 445% with its main driving force of OLED TV.

In addition, LG Electronics’ HE division achieved an operating margin of 8.1% last year. In the major set makers, OLED seems to be the Key factor that increases the company’s sales and improves the market share in the premium TV market. As such, OLED portion is anticipated to expand further in the premium TV market.

Meanwhile, UBI Research predicts that OLED TV sales will be increased by about 30% annually and the revenue is projected as about US$ 5.7 billion in 2022 through the ‘2018 OLED Panel Industry Report’, which was published in February.

LG OLED TV was selected as the best TV for 3 consecutive years

At the best 2018 TV released recently by Consumer Reports, US consumer magazine, LG Electronics’ 65-inch OLED TV ‘OLED65C8PUA’ was selected as the best product among all the products.

<LG Electronics’ OLED65C8PUA, Source: lg.com>

Consumer Reports notes that the OLED65C8 has a good balance of price and performance. With the excellent quality of images including excellent high definition, UHD performance, and infinite viewing angles, it mentions that ThinQ AI platform, an artificial intelligence platform, is also excellent.

LG Electronics’ OLED TV series has remained in the first place for three consecutive years since being selected as the best product in 2016. In particular, the OLED TV released this year was upgraded to higher quality by installing ‘Alpha 9′, a proprietary image quality chip developed by LG Electronics, to reduce noise to half compared with previous models, and to achieve accurate colors with more sophisticated color coordinates.

On the other hand, LG Electronics’ OLED TV continues to secure its position in the premium TV market. LG Electronics announced at the conference call held on April, 26th that the sales revenue and operating profit of its HE (Home Entertainment) business division were recorded KRW 4.12 trillion and KRW W577.3 billion, respectively in the first quarter of 2018. In particular, OLED TVs and UHD TVs led the growth. The operating margin reached 14.0%.

According to LG Electronics, it will continue to operate TV business with profitability. The proportion of OLED TV sales is expected to grow from 10 percent last year to mid 10% ~20% of the total TV sales this year.

QD-OLED TV, is it to be the next generation premium TV?

Samsung Electronics is currently occupying the premium TV market with QD-LCD TVs, which use ‘PL-QD (photoluminescence quantum dot) technology’. This technology has a mechanism in which the material stimulated by external light re-emits light.

The operating profit of the consumer electronics division (CE), which controls QD-LCD TVs, fell more than Korean won 1 trillion in last year and the operating profit ratio was only 3.6%.

On the other hand, LG Electronics’ HE business division achieved a record operating profit of Korean won 1,566.7 billion and an operating margin of 8.1% through OLED TV. Sony also turned its operating profit into a surplus by quickly taking over the premium TV market with OLED TV.

OLED TV has had a positive effect in driving corporate sales growth.

Samsung Electronics has been developing EL-QLED, with EL-QD (electroluminescence quantum dot) technology, to increase its market share in the premium TV market. However, efficacy, lifetime and mass production technology of quantum dot, which is the material of QLED, is not yet secured.

Recently, QD-OLED TV technology, which uses blue OLED as a light source and that implements red and green colors through a quantum dot color filter (QDCF), is attracting attention.

<Expected structure for QD-OLED, Source: Samsung Display Blog>

By using QDCF, it is possible to easily make desired colors by adjusting the size of the QD material and improve the color reproduction rate. This is because the color gamut is enlarged to BT2020, so it is close to natural color and it is possible to deliver vivid picture quality more clearly. In addition, QD-OLED TV has a top emission structure, which makes it easy to secure the aperture ratio, thereby improving resolution and screen uniformity.

However, in QD-OLED TV, there are various problems to be solved such as lifetime and efficiency of blue OLED, and technology of ink-jet printing process. Given that the industry is still in the early stages of reviewing the business possibility, QD-OLED TVs are expected to go into mass production after 2020.

Attention is focused on the QD-OLED TV’s entry into the premium TV market and its impact.

[CES 2018] OLED TV in 17 Types to be Displayed Compared to 2017, and OLED Manufacturers to be Expanded Further

By Hana Oh (hanaoh@ubiresearch.com)

The number of OLED TVs exhibited at CES 2018 increased to 31, which was a significant increase of 17 from CES 2017. The number of OLED TV companies that exhibited at CES 2018 were 7 including LG Electronics, Sony, Panasonic and Skyworth.

At CES 2018, OLED TVs were exhibited with 6 for 55-inch, 19 for 65-inch, and 6 for 77-inch. 65-inch OLED TVs were most on display, and it was noticeable that many companies were focusing on 65-inch OLED TV products. 77-inch OLED TVs in 6 types same as 55-inch were exhibited so that it was found to be included in the main lineup.

In addition, the display resolution of all OLED TVs was UHD because UHD products were mainly displayed according to consumers’ demand for high-definition TV. OLED TVs with FHD resolution had been exhibited until 2015, and only OLED TVs with UHD resolution have been on display since 2016.

Meanwhile, LG Display’s Vice Chairman Han Sang-beom said, “We will raise the sales portion of OLEDs to 40% of total sales by 2020” in a press conference on 8th local time, which implied that OLED TV market will be more expanded.

In addition, Vice Chairman Han Sang-beom said that two major Chinese companies will join the OLED market. As a result, the number of OLED manufacturers will grow from 13 to 15, including LG Electronics, Sony and Panasonic so that the OLED companies are expected to be expanded further.

OLED TV, which is currently leading the premium TV market, is expected to see a bigger rise.

OLED TVs which are driving forces of both LG Electronics and Sony′ performance

The director, So, Hyun-cheol, mentioned during the ′Closing seminar of OLED/Display′ held at COEX in Seoul on December, 7th about that OLED TV has made 9.9% of operating profits for LG Electronics in Q3, 2017. He forecasted there, Sony and LG Electronics who are producing OLED TV now will lead the premium TV market in the future also, in particular, while explaining about that the demands have highly increased as OLED TV entered into under $3,000.

The director, especially, explained that Sony took No.1 player in the premium TV market in 12 years, moreover, one of the driving forces for stock price rise of them at 445% in 2013 was OLED TV. He evaluated them such followings that “Sony has starting to improve the structure of operating profit by focusing on 55-inch and 65-inch TV, and “They built the TV business structure in stable through launching OLED TV in 2017”.

He also expected that the investment for 10th generation OLED producing line of LG Electronics will be moved sooner than expected. He also forecasted that demands on large-sized OLED TVs will rise due to the Winter Olympic Games in Pyeong-chang and World Cup in Russia next year, especially, its investment of OLED line will be accelerated, because Sony would also want it.

Subsequently, while the director mentioned that the cost savings will be accelerated by improvement of yield of OLED TV panel, he said, “Although, 55-inch LCD panel is difficult to improve the production cost more since it is already reached to enough yield as 232$, but, the price competitiveness in the 55-inch OLED production cost will be intensified more, because, there is still able to reduce it from current 545$ up to 378$ by the yield improvement”.

Lastly, Mr. So, expected that the sales volume of OLED TV panel will reach to 2.9 million units in 2018 by operating E4-2 line of LG Display in full. The panel business will be turned into profit-making, and operating profits of OLED TV business shall meet 17.3% in 2019.

The strategy of LG Display’s OLED TV, Source: Shinhaninvest

The number of OLED TV products in 2017 has doubled compared to last year

OLED TV models launched in 2017 have been highly increased rather than both 2015 and 2016. 16 types of OLED TVs were launched in 2016, while 29 kinds of OLED TVs were launched which covers that the number of products has nearly doubled from last year. By company, LG Electronics released total 10 types of products which are the greater number of products launched than competitors, and followed by Loewe with 5 types of products.

<Comparison of No. of OLED TVs by each year>

Meanwhile, OLED TV market led by LG Electronics, was taken attentions of publics when Sony decided to launch OLED TV first in the early of 2017. Sony which launched OLED TV first in CES 2017 to catch public’s eyes with “Acoustic Surface” technology that can make sounds without speakers, is leading the premium market with LG Electronics by producing 55-inch, 65-inch and 75-inch OLED TVs.

The number of OLED TV products are expected to increase in 2018 more and more. According to Flat Panels HD, Philips which launched only one model with 55-inch OLED in the early of this year, decided for releasing the 6 kinds of OLED TV such as 65OLED973, 65OLED903, 65OLED873, 65OLED803, 55OLED903, 55OLED803 and so forth. It is analyzed that the strategy is to aim at diverse consumers which divides OLED TV leading the premium TV market into high-priced line with 9xx model and low-priced line with 8xx model.

The shipment in 2018 is also expected to grow. In accordance with UBI Research, it expects that OLED panel with 55-inch and more will shipped over 2.4 million units in 2018, 9.1 million units in 2022. There is much attentions how OLED TV leading premium TV market will harden its positions all the more in 2018.

<Shipment forecasting of OLED panel in 55-inch and more in 2018-2022>

Price competition intensifies in the premium TV market- OLED TV price close to premium LCD TV

In the premium TV market, price competition is on the rise. The basic premium TV models (55 inch, 65inch, flat type) such as QN55Q7F and QN65Q7F (Samsung Elec.), OLED55C7, OLED65C7 (LG Elec.), XBR55A1E and XBR65A1E (Sony), launched in Amazon (www.amazon.com) in March 2017, are compared to one another).

<Comparison of 55 inch and 65 inch premium TV price>

As a result, the average price of 55 inch models of those three manufacturers dropped by 54.8% from March to October; especially Samsung Elec.’s QN55Q7F showed the highest drop from $ 2,798 in March to $ 1,598 in October. The 65 inch model showed a similar phenomenon. 65 inch dropped 60.0% on average from March to October while Samsung Elec.’s QN65Q7F showing the most dramatic decline from $ 3,998 in March to $ 2,498 in October.

Notably the price difference between 55 inch LG OLED TV and Samsung SUHD TV, both of which were released in 2016, was about $ 1,000 as of Dec 2016, and for 65 inch models, 1,500$ while those released 2017 showed a significantly narrowed price difference as of October 2017-55 inch 200$, 65 inch 300$.

The reason why OLED TV prices are catching up with the premium LCD TV prices is significantly due to stabilization of LG Display production yield. In particular, if the E4-2 line of LG Display, which has started operating since the second half of this year, is fully in operation from 2018, LG Display’s large OLED panel production is expected to increase by 41% to 2.4M units from about 1.7M units in 2017; the OLED TV will accelerate market expansion.

LG Display wins OLED TV Premium Market

LG Display’s OLED TV panel sales in October more than doubled thanks to surging sales of major global TV customers such as LG Electronics, Sony and Philips.

 

LG Display’s OLED TV panel sales exceeded 200,000 units for the first time in October, followed by sales plan of exceeding 210,000 units in November.

 

With the help of Sony’s OLED TV which released LG Display’s OLED TV for the first time this year, it has achieved an overwhelming market share of 74% both in units and sales in the 55” and 65” TV market and OLED TV Set.

(September NPD North American aggregate basis)

 

In North America, Sony’s sales volume in September increased by 2.1 times compared to the previous month, and in Europe, Philips in its third quarter increased by 5.9 times compared to the previous quarter, and sales of LG Electronics, family of OLED TV, together with North America and Europe, experienced an increase of OLED TV sales in September with a surge of 1.5 times compared to the previous month.

(September NPD North America, GFK Europe / CIS 14 countries)

 

Particularly last end of July, it had only been 3 months since LG Display announced the move to invest in OLED to lead the future display market when TV sales are rapidly growing, with OLED becoming the trend of the Premium TV market.

 

This trend is due to the surge in consumer demand after 13 global TV companies introduced OLED TVs in front of the premium TV lineup at the IFA exhibition last September, and the demand for LG Display have increased not only for until the end of the year but even until next year.

 

Accordingly, LG Display’s OLED TV sales are expected to leap over 1.7 million units this year, exceeding market expectations of 1.5 million units, and 2.7 million units are expected to be sold next year.

 

LG Display plans to raise utilization of the E4-2 line to the maximum in Paju, which started operation in this second half of the year.

 

LG Display Vice Chairman Han Sang-Bum states, “OLEDs are rapidly emerging as a premium TV market and are growing steadily in accordance to our production capacity.”

 

Meanwhile, LG Display has actively promoted the trend of OLEDs in the display market and has recently opened ‘OLED Day’ events in China and Europe. In addition, OLED Experience Center has been installed in 8 major cities in China to show OLED potential and future technologies to consumers.

OLED TV, leading the premium TV market, LG Electronics HE division created the largest operating profit

On the 26th, LG Electronics announced its 2017 Q3 performance through conference call. LG Electronics recorded consolidated sales of KRW 15.2241 trillion in 3Q and operating profit of KRW 516.1 billion. Sales and operating profit grew by 15.1% and 82.2% YoY respectively. Sales are the highest in 3Qs ever.

In particular, sales of premium TV increased, and HE division posted record-high quarterly results with operating profit (KRW 458.0 billion) and operating margin (9.9%). In addition, operating profit (KRW 882.9 billion) and operating margin (9.2%) are the highest in the household appliances business including household appliances and TVs.

LG Electronics announced that its HE division posted sales of KRW 4.6376 trillion and operating profit of KRW458 billion, and sales of premium TVs such as OLED TVs and UltraHD TVs increased steadily, with 12.0% YoY growth. It is known that the operating profit and operating margin (9.9%) reached a record high on a quarterly basis due to improved profit structure by expanding sales of premium products.

LG Electronics said on Oct 11 that monthly sales of OLED TV have exceeded 10,000 units for the first time in Korea and that it is speeding up its popularization. LG OLED TV has been recognized for its image quality by being awarded the top spot in the performance evaluation conducted by non-profit consumer magazines in 11 countries including the US and UK this year and the price of the 55-inch OLED TV has dropped to the mid-2 million level, and It is regarded as the cause of goodness of its sales.

LG OLED TV accounted for about 30% of domestic TV sales of LG Electronics, and it is known to have completely settled in the market. LG Electronics official announced plans for the future, ” HE division plans to continue sales growth and stable profit structure focusing on premium products such as OLED TV and UltraHD TV.”

OLED TV with different characteristics and advantages by set makers

LG Electronics announced on last 11th that LG OLED TV is speeding up the popularization with the monthly sales volume of 10,000 units and above for the first time in Korea. In addition, Sony, which joins the OLED TV camp in 2017, is enjoying great popularity and continues to expand its market share in the premium TV market. As such, OLED TV is leading the premium TV market by improving cost competitiveness through cost reduction as well as excellent image quality.

OLED TVs are currently being mass-produced by LG Electronics, Sony, Toshiba and Panasonic. Although all set makers that produce OLED TVs use OLED of LG Display, they are producing OLED TVs with different characteristics and advantages.

First, LG Electronics mentioned OLED’s vivid image quality and wall paper design as advantages of OLED W7 which is a signature TV. LG Electronics mentioned that OLED, which is a self-luminous element, can express near-infinite contrast ratio and rich color close to nature, and supports Dolby vision HDR and HDR10 to experience vivid image quality. Also, introduced that a 4.6mm of thin panel provided the experience of seeing the theater screen and all parts except the panel were housed in a space called innovation stage and completed the perfect wall paper design.

<OLED TV W7 of LG Electronics, Source: LG Electronics>

Sony emphasizes sound, image quality and simple design as the advantage of 4K BRAVIA OLED TV A1E series. It mentioned that the TV screen, which attracted great attention in last year’s CES 2017, can provide an enhanced immersive feeling by applying the ‘Acoustic Surface’ that the TV screen vibrates and makes sound by itself. In addition, the ‘X1 extreme processor’ HDR chip has been applied to improve the picture quality of OLED TV, and the cable is housed in the stand on the backside so that the simple design is realized.

<Acoustic Surface of Sony 4K BRAVIA OLED TV A1E, Source: Sony>

Toshiba then mentioned a high color gamut of 100% DCI-P3 and a high brightness of over 800 nits as the advantages of the REGZA X910. It said that it increased the color reproduction rate to express natural colors and improved the brightness to express the bright and dark parts in richer gradations and strengthened HDR restoration function to realize sharp and realistic high-definition video.

<REGZA X910 of Toshiba, Source: Toshiba>

Lastly, Panasonic stated that it implemented full black and rich color expressions. Especially, it emphasized that it applied ‘Hexa chroma drive plus’ which is Panasonic’s high-definition technology to express high contrast and colors hidden in dark areas that were difficult to implement in LCD TV and reproduced the emotion that the video producer intended.

<Comparison of ‘Hexa chroma drive plus’ technology application of Panasonic, Source: Panasonic>

As such, OLED TV set makers are introducing different OLED TVs that emphasize their characteristics and advantages. In addition to the above four makers, LOEWE of Germany and B & O of Denmark are expected to continue to launch OLED TVs, including mass production of OLED TVs or preparations for mass production. Based on the unique technology of set makers, it is worth noting that OLED TVs with what kind of characteristics and advantages will be produced.

[iMiD 2017] TCL, Development focusing on Solution process OLED and QLED

TCL’s Xiaolin Yan CTO addressed solution process OLED TV and self-emitting QLED TV as premium TV after white OLED TV at iMiD 2017 keynote address in BEXCO, Busan on 29th.

Yan CTO noted that white OLED TV, which is currently leading the premium TV market, meets all the requirements of premium TV due to its superior image quality, design differentiation, high resolution realization and nature-friendly characteristics compared to QD LCD TV.

In addition, the price that is higher than the current QD LCD TV is expected to be overcome by applying the solution process, and mass production is also expected in 2019.

Yan CTO predicted that the “solution process would be easy to produce 75-inch panels at Gen 10.5 because the process can be performed without splitting the ledger,” and “it is also possible to produce full-emission RGB OLED TVs.” However, he emphasized that the compatibility of materials and equipment and the development of ink forming process technology should be done.

Following to that, “QLED structure is very similar to OLED structure, so it is easy to apply the technology because of the low entry barriers,” he said. “The lifetime and efficiency of the blue light emitting layer compared to the current OLED is very low, and performance must be ensured without the use of cadmium.”

Lastly, He mentioned the establishment of printing technology in Guangdong JUHUA to promote the commercialization of solution process OLED TV and self-luminous QLED TV, and emphasized the cooperation of material, equipment and panel makers to develop next-generation premium TV.

LG Electronics, “Sales of the Premium TV in 2017 would hold 60%”

LG Electronics spoke that “The portion of premium TVs in total TV sales will be increased from about 40% in 2016 to around 50% in first half of 2017 and up to 60% in the end of this year.” at the conference call in Q2 2017, which was held on 27th.

The performance in Q2 for HE area of LG Electronics showed 4 trillion and 234.9 billion won in sales, and 343 billion won in operating profit. The QOQ on sales was declined to 2.1%, and the demands of the global TV market are continuously reducing, but the sales of the same quarter in last year showed 1.9% growth through the sales expansion of the OLED premium TVs.

Jin-ho, Ha, the HE director of LG Electronics said that “The Q2 performance was slightly decreased in QOQ and same quarter in last year due to the panel cost increase and marketing promotion for the new product launching, but we sustained healthy profit structures through the expansion of the premium TV sales and the improvement of cost structures consistently.” And also expected, “There are concerns on the slowdown in growth of worldwide TV market for the interest rate hikes and the oil price decrease, nevertheless, the premium TV market will steadily grow according to the demand increase on OLED TV and UHD TV.”

Subsequently, he answered on the question of the counterstrategy for the SONY, “It is not just right time to judge the OLED TV of SONY yet, but until now, we think that the OLED TV of us is quite superior regarding the aspect of design of products, image quality, and its lineup and so on.”

On the recent investment for large-sized OLED of LG Display, “LG Display and LG Electronics, both of us, will wisely take and proceed the world best strategy together of premium TVs by strengthening the premium status of OLED TV.”

He explained on the TV business of LG Electronics, “We have been improving the profitability focusing on the premium lines, and also completely avoiding the quantitative competition. We plan to continuously sustain the quality-oriented rather than quantity.” He added, “We will pursue the activities to intensively keep the premium image of OLED.”

They stated to be maintaining the stable profit structures with aiming at continuous sales expansion of premium products through the marketing promotion for the premium TV-oriented to prepare the high-season for the TV market in second half.

LG Electronics concentrates on ‘product competitiveness not price competitiveness’ in the premium TV market

LG Electronics reported that they plan to focus on product competitiveness rather than price competitiveness in the premium TV market in future through the conference call in Q1 of 2017 which was held on 27th, April. During the Q&A session on ‘the sales strategy of OLED and premium TV’, Jin-ho, Ha, the director of HE (Home Entertainment) said that “we will continue to expand OLED position in the premium TV market and also in future what the competitiveness we need in the premium TV market is product competitiveness rather than price’s.”

The performance in Q1 of HE in LG Electronics was 4 trillion 3261 billion won of sales volume and 3822 billion won of sales profit. It has been reduced 4600 billion won versus previous quarter under the influence of off-season. Nonetheless, YOY (Year on Year) has been kept at the same level. The sales volume was grown up in the area of North America, South Korea and Latin America for the reason of sales expansion of premium TV, though the market in Asia was decreased versus QoQ for the lack of sufficient demand.

Jin-ho, Ha, the director of HE in LG Electronics said that “We improved the profitability versus previous quarter by expansion of premium product sales, improvement of cost structure and flexible management for the panel price rise.” He also expected that the stagnant demand in whole TV market would be continued, but the demand would be increased in the area of North America, Latin America and Asia where are holding relatively high sales ratio.” In addition, “We would maintain sound profit structure and strengthen premium position by diverse global launching of products which leads the market such as ‘LG Signature OLED TV W’.”

He answered the questioning of in future panel price expectation and OLED TV line-up idea, “The panel has been significantly rising from in Q4 of 2016, and it has reached up over 60% versus June where is the lowest point last year”, and “We will design completive line-up composed of ‘premium, best, middle and low’ to aim the premium market within OLED TV group.”

For the question of the strategy in TV market in future, “In present which panel cost is increasing, we would operate the strategy based on the profitability by avoiding a simple volume competition, and we think that the market share in low price TV market is not meaningful. So that we plan to go forward the improvement of quality as a response based on the premium TV market having over 2000~2500 dollars.”

The strategy in TV market of LG Electronics announced at the conference call in Q1 2017 is consistent development of premium TV lineup which brings better profitability with high value-added product. They also expressed that will firmly build their position in the premium TV market with product competitiveness by image quality and technology rather than price competitiveness related to panel price.

“OLED TV Release” = “Improve brand image and maximize creation of profit”

(Reporter : YOON DAE JEONG)

During the 3rd OLED Korea Conference that was held for two days from March 8 ~ 9 by Ubiresearch, Director Suyeong Yoon of LG Display made a keynote presentation with the topic “Future TV is here, It’s OLED”

Director Suyeong Yoon introduced the strengths of OLED TV by saying, ” Compared to a LCD TV, the OLED TV shows its strengths in video quality such as color gamut, contrast ratio, and response time. Especially, the HRD is a displays’ essential technology that displays a brighter area more brightly and a dark area more darkly, and can have the expression realm covered 20% more with OLED when comparing to LCD.”

Also, by mentioning the Crystal Sound OLED that was introduced during the last CES 2017 he revealed, ” The Crystal Sound OLED that materializes sound from the inside by internalizing a sound system to the OLED panel can increase immersion since it sounds like the person is actually speaking. Brand image will increase and profit will be created at the same time if the OLED TV is released, and the representing evidence is the award at the CES 2017 and performance on Best Buy.

The OLED TV actually received 54 awards during the CES 2017 which is 3x more than its competitors, and earned big responses like receiving a 68% on a survey of the most impressive TV during the CES 2017 that was targeted for investors and analysts. Also, even though OLED TV has been displayed in the corner these days, it shows pictures of Best Buy in the center of the store and compared to the 3rd quarter of 2016 it shows a slight increase of 1.4 contravariant to a 35% increase of business profit in the 3rd quarter of 2017, all of which is evaluated that OLED TV had a big part is this.

On the other hand, Director Suyeong Yoon predicted that Sony, which is in the BEST3 of the premium TV market, will participate in the OLED TV and 1.7M~1.9M large OLED panels will be shipped. He also mentioned that OLED TV is quickly growing in the world premium TV market and even though the OLED TV is focused on the premium TV market due to the current output it plans to slowly increase its output and decrease the cost to enter the middle-end market.

Competition for definition in Premium TV market is getting fierce.

Competition for definition of TV between LG OLED TV and Samsung QD-LCD TV is getting fierce in Premium TV market.

Samsung announced that ‘color volume 100%’ of QD-LCD TV has been verified from VDE(Verband Deutscher Elektrotechniker), a standard verification association in Germany for the first time in the world. Color volume is a new standard designed to measure even the variation of colors which get different according to brightness as the range of brightness which TV can express gets wider and it’s a standard to measure how accurately TVs realize the intention of an original author. Samsung announced that VDE verified color volume 100%, measuring color area and brightness level of QD-LCD TV in a 3 dimensional form.

<Samsung QD-LCD TV which acquired verification of ‘color volume 100%’ from VDE in Germany>

On the other hand, in last Feb. 20, through its blog, LG also announced that it has received an evaluation of excellence for definition of OLED TV in items of Black, Peak brightness, Color, etc. in the result of a recent definition test of OLED and QD-LCD from Burosch in Germany, a professional evaluation company for video technology and display. Products whose definition were evaluated are TV 65E6 and QD-LCD TV 65KS9800, and LG announced that OLED TV recorded 5 points out of 5 in major test results such as HDR and SDR definition.

<Comparison of Space Scene Definition of QD-LCD TV(Left) and OLED TV(Right), Source : LG Display blog.>

As Samsung and LG launch premium TV in a row, a real competition to hold a lead in premium TV market has started. On 27, by Bestbuy, price of 55 inch C7 of OLED TV which LG launched this year is US$ 3,499.99, and US$ 2,499.99 of 55 inch Q7 of Samsung and Q8 which is more luxury type than that is getting closer to US$ 3,499.99, so the competition for definition is predicted to get more fierce in the future.

Many people are paying attention to which one will hold a lead in the competition for definition of premium TV between QD-LCD TV which hold a lead in the aspect of brightness and OLED TV which holds a lead in the contrast range, response speed, etc.

2017 Premium TV Market Structure due to the Different Prices of Premium TVs and Sony’s Joining in OLED TV Market

Some line-ups of Samsung Electronics QLED TVs including the Q7 and Q8 introduced at CES 2017 are starting to be unveiled and preordered on its official U.S website and Amazon. The products for preorder are 55, 65, and 75-inch flat TVs of Q7 line-up, and 55 and 65-inch curved TVs of Q8, the higher lineup than Q7. QN65Q7F 65-inch flat TV cost US$ 3,499.99 on Amazon, as of 16th, and QN65Q8C 65-inch curved TV was US$ 4,499.99. It was 20% more expensive than ‘SUHD TV’, the premium TV line-up launched in 2016, and it was intended to build premium TV’s own image by highlighting high price range and enhanced picture quality.

On the other hand, LG Electronics OLED TV prices keep on decreasing. OLED65C6 65-inch curved OLED TV was launched last year at US$ 3,197.00 on Amazon as of 16th, and that was 50% cheaper than US$ 6,000.00 on June, 2016. In addition, the lunch price of OLED65C7 65 inch-curved OLED TV to sell this year is set as US$ 4,000.00 on Amazon as of 15th, which was a 30% cheaper than 2016 and US$ 500.00 cheaper than Samsung’s QN65Q8C 65 inch curved TV. As LG Electronics are leading the OLED premium TV market, it is likely to pay more attention to popularization due to is low price.

<Price Comparison of 2017’ 65-inch Curved TV New Products, Source : Amazon.com>

Due to similar prices of OLED TV and QLED TV in the premium TV market, high-quality picture, brand image, consumer needs satisfaction are gaining importance. Color reproduction among high-quality picture factors has similar performance, whereas OLED TV still gain a competitive advantage in contrast range and response speed. Besides, Sony that has kept a strong brand power and status in the premium TV market showcased OLED TV with higher-quality picture upgraded by ‘Acoustic Surface’ technology that produces sound without speaker and ‘X1 extreme processor’ HDR chip, attracting a lot of attention at CES 2017. Its release date and price have not yet been announced, but it is expected to greatly influence the premium TV market.

There’s a keen interest on, how the 2017 premium TV market will change due to the different price strategies of premium TVs to be released and Sony’s joining in OLED TV.

Will Curved TV Disappear in the Premium TV Market?

The curved TV introduced firstly in 2013 has attracted attention for a long time, and many companies including Samsung Electronics and China’s Hisense, Haier and TCL showcased curved TVs at CES 2016. In addition, newcomers including Xiaomi and LeTV released curved TVs, and Samsung Electronics organized ‘Curved Federation’ with China’s TV companies such as Hisense and TCL in August, 2016 to cooperate with each other for the expansion of curved market, and the reviews on the curved TV market are generally positive.

But, only a few companies such as Korean and Chinese ones unveiled curved TVs at CES 2017, while other electronics companies in Europe and the US showcased flat TVs only. Meanwhile, LG Electronics said that it plan to release flat TVs only for Q9, a flagship TV model of 2017 but curved TVs for less expensive models Q7 and Q8. With its plan to focus on flat OLED TV in the future, pointing out the downward trend of curved TV market, LG plans to pay more attention to flat OLED TV. Likewise, major TV set companies’ awareness of curved TV started to change. Besides, European electronics company Vestel mentioned the disadvantage of curved TV that is too sensitive to viewing angle, and TV review company Reviewed.com and other review companies offered negative opinions on curved TV. This expects that the position of curved TVs is likely to dwindle in the premium TV market.

Accordingly, the premium TV market will have intense competition for the clear picture quality of flat type TVs, whereas curved TVs are expected to have competition with Chinese companies in a lower level TV market. As many Chinese TV makers have released curved TVs, curved TV in the premium TV market is no longer a competitive point. Therefore, TV set companies need to find a new turning point to catch the eyes of the consumers.

<Booth Photos of Samsung(Left) and LG(Right) at CES 2016 and 2017. Many curved TVs were mainly unveiled in 2016, but flat TVs in 2017>

[CES2017] The load of the TVs : Return of the king

Sony was just kept premium TV market because they were left behind by Samsung Electronics and LG Electronics in middle-price TV market and not released new products in low-price market also, although they have been dominated the TV market until 10 years ago. But, Sony has splendidly returned with OLED TV at CES2017.

TV business was the face of Sony due to having the strongest aspects in the TV market, they always were located at the main showroom as the center during CES and IFA. However, the TV business has been downsized due to years of deficits on it and the camera replaced the TV spot in CES2016 and IFA2016 last year. Many attendees at the show felt that Sony was into the process of falling out of the TV business and thought it would turn into a camera company.

Sony, however, declared that they will be a king once again in the TV market at CES2017. TV defeated the camera and took the middle of the entrance of the exhibition hall again. But this TV is not an LCD that Sony has ever sold, but an OLED TV.

Sony has unveiled its BRAVIA OLED adapted a 4K HDR process X1 on 77-inch and 65-inch Crystal Sound OLED panels which is directly developed by Sony and produced by LG Display.

There was different from the OLED TV seen so far. In short, it’s “WOW”. It can be described as the most beautiful and elegant TV in the world. It was not comparable to the existing BRAVIA LCD TV displayed next to it. That LCD TV has the highest image quality among LCD TVs by using Quantum dot technology. Nevertheless, these LCD TVs have fallen into low grades unlike those of newly introduced OLED TVs.

A Sony representative of the exhibition said that the points to decide the OLED TV business was due to the meeting with Sony’s desire for image quality, and that mass production has not been decided yet but it will be after the second quarter of this year.

So far, the OLED TV market has been dominated by LG Electronics under leading, but with the attending of Sony, the OLED TV market is expected to grow even further.

The premium TV market will be led by LG Electronics and Sony focused by OLED TVs.

2017 will be an important year to be able to emphasize the innovation of OLED to consumers

<Lee Woo-keun, a senior researcher at LG Economic Research Institute>

Lee Woo-keun, a senior researcher at LG Economic Research Institute, predicted that the year 2017 will be an important year to be able to emphasize the innovation of OLED to consumers, in the seminar for the 2016 OLED evaluation held at the Yeouido Small & Medium Business Center in Seoul, hosted by UbI Research on last December 2.

He added “LG is leading the OLED TV market in the premium TV market ahead of next year’s CES, but we will have to keep an eye on the impact of Sony’s joining” as one of the notable issues in large-sized OLED panels, and he continued “as there is still a fundamental expectation for Sony’s image quality among existing consumers, we will have to pay attention to what innovative appearance Sony’ OLED TVs will show and how they can appeal to consumers.

Referring to the adoption of OLED panels in Apple’s iPhone8 (tentative name) in the mobile phone market, as a small and medium issue, he said “it is important how to realize OLED display on Apple iphone 8, and how much impact it will have on consumers through this”. He said “if we could not show the innovation distinguishing it from existing LCDs despite adopting OLEDs, consumers’ expectations for OLEDs may be diminished,” emphasizing that it should draw meaningful responses to OLEDs from consumers’ perspective .

It is expected that Apple will launch iPhone applying flexible AMOLED panels in 2017, and Sony is also being confirmed to continuously review its entry into the OLED TV business. In 2017, it is expected that the number of set-makers launching OLED-applied products will increase more. In the situation that consumers are expecting a ‘completely new thing owned only by OLED products’, which is entirely different from existing LCD products, through various media reports and rumors, the year 2017 seems to be an important year to emphasize the innovation of OLED and to promote its merchantability.

LG OLED TV Dominates the North American Premium Market, Overtaking LCD

At the 2016 IMID Business Forum held at COEX in Samseong-dong on October 26, 2016 LG Display managing director Kim Gwang-jin announced that the share of OLED TV overtook that of LCD in the North American premium market, and they will put more focus on the premium market.

LG Display managing director Kim Gwang-jin added “Larger than 65inch US$ 3,000 had a 53% market share and larger than 55inch US$ 2,000 had a 80% market share in the North American premium TV market in the first quarter of the year. And, the result indicates that consumers spend their money to buy premium TVs, so OLED TV is now successful in the premium TV market and they will continue to concentrate its energy on OLED TV of the premium market”.

He also said that the lifespan that has been pointed as one of the OLED TV’s problems guarantees more than 10 years of lifespan if it is used for 8 hours a day, compared to American TVs with 8 years of replacement period and Chinese TVs with 6 years of replacement period. With regard to image sticking, OLED TV has been upgraded by compensating circuit, sensing, and algorithm with no problem.

In addition, he expects to produce 900,000 this year and more than 1.5 million large-size OLED TV panels next year according to the next year’s market forecast, and create such various areas of markets as monitors and signage besides TV.

Meanwhile, this year LG Display made the third investment in large-size OLED panel production line, aiming to run it in the first half of 2017.

WOLED will lead premium TV market after 2020

UBi RESEARCH held ‘An Analytical Seminar on OLED Market Entry Feasibility of QLED and Solution Process’ on the 14th at Seoul Small& Medium Business Center.

CEO Lee Chung-hoon of UBi REARCH said “OLEd TV will show 16.7% market share in 2016 at the world premium TV market, and lead premium TV market with 68.1% share in 2020.” and analyzed such like “LCD TV could not follow OLED TV performance excluding low price and high solution.”

China is threating domestic LCD market in current wide TV market while displaying material superiority to LCD industry, and cost-effective rate of the wide TV is losing ground to Chinese products too. Thus, LG Display and LG Electronics did successful market entry after having equipped with competiveness in the premium market through OLED TV, and they are expediting mass-production investment and technical development aiming at dominating and popularizing premium TV market.

The most important factor in popularizing OLED TV is price. ASP (average sales price) of UHD OLED panel based on second quarter of 2016 is USD 720, and FHD OLED panel is approximately USD 450. It was expected that UHD OLED panel could lead TV market if it secured about USD 500.

Development to adopt solution process methods has been progressed in order to lower price of wide OLED panel in the industry, and QLED technology as an alternative of OLED TV is becoming an issue nowadays.

In relation with this, CEO Lee Chung-hoon forecasted like “As much as being closed to commercialization due to development of solution process OLED or QLED technology, WOLED technology becomes to be developed one step more, so market entry of solution process OLED and QLED will not be achieved easily. Specially, there are many technical issues in QLED which is considered as next OLED by Samsung Electronics, and 10 years of research will be required further.”

Also, he emphasized that the technology of being able to reduce cost vs. WOLED such as lessening layer numbers dramatically etc. should be developed in order to enter solution process OLED and market successfully, and the entry shall be made by targeting low-end market. In particular, he analyzed that WOLED would lead premium TV, and solution process QLED and QLED occupy the low-end market after 2020.

<TV Market Scenario after 2025 (Source: UBi RESEARCH)>

Possibility for market entry of Solution process OLED and QLED with new technology of large surface.

Currently in the market of premium TV, OLED TV and QD- LCD industries are highly competitive.

QD vision with Nanosis and SID 2016 and IFA 2016 also emphasized quality of TV with QD material included comparing quality of OLED TV. Against this, LG Display joined the completion by emphasizing quality of OLED TV as an ideal display for HDR with comparison between QD-LCD and OLED in IFA 2016 with from SID 2016,

In current large surfaced TV market, LCD TV is taking overwhelmingly large share in distributed market while OLED TV gradually is growing large share in premium market.

In looking into strategies of each industry, large surfaced OLED is developing solution process OLED in order to achieve broader market share with from premium model to distributed model. To overcome weakness compared to OLED, LCD TV industry progressively use QD material with the final goal of development of QLED technology

As a competition in premium TV market gradually extends to entire area of TV market, present condition and possibility of market entry with solution process OLED and QLED is one of major interest.

For this matter, there is seminar host by Ubi Industrial Research with the theme of “analysis in possibility of market entry with QLED and Solution process OLED” in Medium sized business center, Yeouido, October 14th and will be discussing present market industry of large surfaced TV and panel and also will be dealing with present condition and issue of QLED and Solution process OLED, and future possibility of market entry.

Choong-Hoon Lee, president of Ubi Industrial Research, will suggest future direction of OLED industry with analysis of present condition and possibility of market entry in OLED and QLED.

Sung-Jin Jung, head of department of Du Pont, will be discussing the timing of market entry of solution process OLED with the demonstration of soluble OLED material, the essential part of solution process OLED, including present trend and up to date developmental technique

Professor Chang-Hee Lee and senior researcher Ji-won Bang from Korean Institute of Ceramic Engineering and Technology(KICET) will be discussing about advantage and developmental issue of Quantum dot material and direction of future development.

The seminar attracts attention in terms of providing an opportunity to share and discuss regarding issue through media and exhibition with technological and market perspectives of Ubi Industrial Research and share opinions and future possibility.

For registration and any inquiry, please contact to Hana Oh (hanaoh@ubiresearch.co.kr, 02 577 4940) from Ubi Industrial Research.