Not much new here, but a couple quotes I thought might be of interest.A Tech Too Soon - Samsung Electronics Taking a Pause in OLED TV Business
G Electronics has recently lowered the prices of its OLED TVs by a large margin. Under the circumstances, much attention is being paid to Samsung Electronics’ next-generation TV business strategy.
At present, LG Electronics is continuing its R&D and investment in OLED TV for price cut, but Samsung Electronics is focusing on ultra high-definition (UHD) TV rather than OLED TV. Still, the UHD TV market is a tough battle as well because the mid-end segment of the market has already been dominated by Taiwanese and Chinese manufacturers.
Samsung Electronics brought UHD TVs to the fore at the Consumer Electronics Show (CES) 2014 in Las Vegas. “There is no doubt that OLED is a very nice technology, but we think that technological perfection should come before its commercialization,” said a high-ranking executive of the company, adding, “It seems that three to five more years will be taken until the market will be in full bloom.”
Samsung Electronics is planning to release a full line-up of UHD TVs this year and concentrate on them for a while as its next-generation TV products.
Experts say that this is associated with the product yield and some technological challenges. The average price of its OLED TVs is approximately 100 million won (US$94,300), which is quite burdensome for many customers. The unit cost of production has to be cut in order to address this matter, but there are not a few technological problems. This is why Samsung has not been able to make a decision for investment in the manufacturing of large screen OLED TVs. Samsung Display President Park Dong-geon has announced that he will finalize its plan for investment in the A3 plant located in Asan City, South Chungcheong Province, before the end of the first half, but the plant is dedicated to small and mid-sized OLED panels.
“Samsung Electronics has no confidence in investment in large-screen OLED panels,” said an industry insider. However, LG Electronics is showing an aggressive stance these days, marking down the price of its 55-inch OLED TV to 6.2 million won (US$5,847).
Samsung is unlikely to distinguish itself in the UHD TV market, at least for the time being. The global demand for UHD TVs reached three million units last year, and the Chinese market accounted for more than 80% of it.
LG Electronics and Samsung Electronics focused on the high-end market last year, releasing mainly 55-inch or larger products. In the meantime, Taiwanese and Chinese companies such as Innolux found their way into the mass-market segment to increase their presence to the point of threatening both of the Korean manufacturers.