A fierce competition has ignited between two Korean electronics giants, Samsung Electronics and LG Electronics, at IFA 2023, Europe’s largest consumer electronics and IT exhibition. While both companies dominate the premium TV market with their cutting-edge technology, they face fierce competition from Chinese manufacturers who are closing the gap.
At the Messe Berlin Exhibition Center on September 2nd, Samsung Electronics unveiled a series of 98-inch ultra-large TV models under its “the bigger, the better” strategy, highlighting a trend towards larger screens. In contrast, LG Electronics showcased the world’s first wireless organic light-emitting diode (OLED) TV, the “LG Signature OLED M,” underscoring its technological expertise. These two approaches reveal contrasting strategies.
“Consumers have an insatiable desire for big TVs,” said Jung Kang-il, Senior Vice President of the Next Generation Planning Group at Samsung Electronics’ Video Display Business Department, during a press meeting on August 1st. “Demand for ultra-large, high-resolution TVs is on the rise. We are considering all options, including launching TV models that are 100 inches or larger.”
However, LG Electronics has a different perspective, believing that TVs over 100 inches are unnecessary. “When TCL from China presented a 115-inch TV model, I asked them where they planned to sell such a massive TV,” said Baek Sun-pil, Senior Vice President of Product Planning at LG Electronics’ Home Entertainment Business Division, during a technical briefing. “They said there are 20 million villas in China where these TVs could be sold. But globally, there isn’t a significant market for TVs over 100 inches. The TV market is largely focused on models under 100 inches, and LG has no plans to manufacture TVs of that size for villas in China.”
Shifting Market Dynamics in the Global TV Industry
According to market research firm Omdia, the global TV market is projected to reach $96.5 billion this year, a decline of 5.8% compared to 2022, as demand for TVs has decreased since the COVID-19 pandemic. Despite this trend, demand for ultra-large and premium TV models continues to grow.
The share of TVs sized 70 inches or larger in the global market is expected to increase from 20.2% in 2022 to 26.3% in 2027, and the share of 60-inch to 65-inch models is predicted to rise from 22.5% in 2022 to 26.1% in 2027. Meanwhile, the market share for 50-inch to 59-inch TVs will likely shrink from 32.6% in 2022 to 27.6% in 2027, with a similar decline for 40-inch to 49-inch models, dropping from 16.5% to 13.7%, and for TVs under 39 inches, decreasing from 8.3% to 6.3%.
Competing Strategies: Chinese Companies Challenge Korean Giants
Chinese manufacturers introduced a range of mini light-emitting diode (LED) products, a type of liquid crystal display (LCD), positioning themselves as competitors to the two Korean TV makers. Samsung focuses on technological superiority, while LG emphasizes innovative design concepts.
“Even with similar mini LED displays, we can achieve much clearer images through various image quality algorithms and expertise, so it doesn’t matter if the technology itself has the same name,” said Jung from Samsung. Baek from LG added, “A 27-inch monitor costs between $150 and $225, while the LG StanByMe Monitor of the same size costs around $750. Design innovation creates these price gaps, which are highly significant.”
Diverging Views on Micro-LED Technology
Samsung and LG also have differing views on micro-LED technology. “Micro LEDs solve all the limitations of current displays. I believe they represent the future of display technology,” said a Samsung spokesperson. However, LG expressed skepticism, stating, “Even low-cost micro LED TVs made in China cost more than $105,000 to $113,000 per unit. Unless the price of a micro LED TV drops below $7,500, the market for these TVs will not grow significantly. We estimate it will take more than five years for the micro LED TV market to develop.”
Meanwhile, TCL took the title of displaying the largest TV at IFA, a 163-inch 4K micro LED cinema wall. However, as micro LEDs are assembled by combining modules, miniaturization is seen as critical for securing a competitive edge in the micro LED TV market. “The LED diodes must be closely packed, and minimizing gaps is essential,” an industry insider noted, adding, “If you look closely at Chinese products, you can see visible borders at the connection points, like cracks.”
Additional Innovations from Chinese Manufacturers
HiSense showcased an 85-inch ULED TV model featuring mini LEDs to emphasize cost-effectiveness, while CHiQ presented a 55-inch transparent OLED screen to demonstrate its technological capabilities. “CHiQ’s transparent OLED screen uses display panels from LG Display,” revealed a source from the Korean display industry.
Uncertain Future for Samsung’s OLED TV Collaboration
Plans for Samsung Electronics to debut its OLED TV model, which was eagerly anticipated due to its collaboration with LG Display, hit a snag. Initially, Samsung planned to showcase an 83-inch OLED 4K TV model using LG Display’s OLED panels at an IFA preview event but withdrew from the showcase on the opening day. Industry insiders reported that both companies have been blaming each other for panel and product issues.
출처 : Businesskorea(https://www.businesskorea.co.kr)
Michael Herh pr@businesskorea.co.kr
Disclaimer: The views and opinions expressed in this article are those of the original authors and do not necessarily reflect the official policy or position of MiniMicroLED Insights . While we strive to ensure the accuracy and reliability of the information provided, the content on this website may include translations, re-edited versions of second-hand information, or information derived from unverifiable sources. MiniMicroLED Insights makes no representations or warranties, express or implied, regarding the completeness, accuracy, or timeliness of such content. The information in this article is for informational purposes only and should not be construed as professional advice. Any reliance you place on such information is strictly at your own risk. To the fullest extent permitted by law, MiniMicroLED Insights disclaims all liability for any direct, indirect, incidental, consequential, or punitive damages arising out of your use of, or reliance on, the information contained in this article.
Copyright Notice: This article may include translated and re-edited content derived from various online sources, including websites and social media platforms. While we strive to credit the original authors and sources to the best of our ability, we may not always be able to verify the original source of the content. All rights to the original content remain with the original author or source publication. Where applicable, this content is reproduced for educational and informational purposes under the fair use doctrine. If you believe any content on this site infringes upon your intellectual property rights, or if you are the copyright owner and believe we have not credited you correctly, please contact us at minimicroled.business@gmail.com. We will investigate and take corrective action, including removing or properly crediting the content if necessary.
Content sourced and adapted by MiniMicroLED Insights (Doris).