Originally Posted by Desk.
'Or something like that'... being the key phrase in your post.
In the January LG earnings call, LG's head of IR Hee Yeo Kim said of the planned 600,000 shipments in 2015, "It is just 2.3% for total TV market demand. It means we have to target ultra-high-end market, so price point will be very strategic because we are targeting ultra-high-end market."
You do understand, don't you, that with LG only able to manufacture a small number of panels in 2015, at costs to themselves currently far higher than it would be to make LCDs, the territory they're first going to be have to get a foothold within is the 'ultra-high-end' market?
What is your basis for somehow believing that OLED panels are cheap to make, leading you to believe that LG are somehow deciding to jack up the prices and stick it to the consumer?
Or maybe it doesn't need any foundation, or even a basis in reality, so long as you add the disclaimer 'or something like that'.
I think you misunderstood my post. Let me clarify.
LG is the only game in town, has zero competition, they are aiming for the ultra high-end of the market...
You mistook that to think I meant LG is leaving meat on the bone for themselves... That is not what I meant.
First off, none of us know how much meat is left on the bone for LG... they could be making these at a loss to get the technology out there for all we know, or they could be leaving a ton of meat on the bone... you know companies do that, right?
What I ACTUALLY meant was that they aren't even TRYING to reduce the cost at this time. And if they actually do manage to sell 600k units, that is hardly enough to bring the price down on scale.
Fact is, zero competition will keep the price high and low volume will as well.
A Ferrarri certainly costs a lot more then a Toyota to build... but a BMW? A BMW doesn't cost much more then a Toyota to actually build. They keep the prices high on BMW to keep it a luxury item. Not saying that is what LG is doing with OLED or that is what they intend to do. Just saying that it happens. A lot.
Hell, you can buy a $2000 BluRay player and a $50,000 record player if you want...