The OLED TV market is monopolized by Korean manufacturers. What about domestic brands?

time:2022-11-27 03:21:21 author:Hard disk
The OLED TV market is monopolized by Korean manufacturers. What about domestic brands?

In the past two years, consumers' choice of TV products has no longer blindly pursued high cost performance, but paid more attention to image quality performance and functional experience. Driven by this high-end and large-screen trend, last year, the domestic color TV market experienced a relatively rare situation of "decline in volume and increase in value", and large-size and high-end TV products were more favored by consumers. As an emerging product in the high-end field, OLED TV will achieve global shipments of 6.5 million units in 2021, an increase of nearly 80% year-on-year, and its share in the high-end market will increase to 35.7%. Omdia predicts that the shipment of OLED TV panels may reach 10.5 million in 2022, and its share in the high-end market is expected to increase to more than 42%. At the beginning of this year, Samsung announced that it would stop its LCD business in June and accelerate its transition to QD-OLED. In March, Samsung released a new 4K QD-OLED TV S95B, priced at $2,399.99 for a 55-inch TV. Recently, foreign media THE ELEC reported that Samsung is developing a new OLED panel that is thinner and cheaper than the previous generation, and the panel can also be curled. Xiaolei guessed that Samsung may want to quickly open up the OLED TV market through price advantages and product differentiation, and compete with LG for market share. (Source: Samsung official) Samsung has transformed and upgraded all production lines to produce OLED panels, and the output should increase day by day. At the same time, domestic brands such as Xiaomi and Hisense are also actively deploying OLED TV product lines. It is foreseeable that the market will enter a stage of rapid growth. With the gradual reduction of panel process costs and the addition of domestic panel manufacturers such as BOE, OLED TVs are expected to become cheaper and cheaper, reaching a range that everyone can accept. In the context of the high-end consumer trend, OLED seems to have a very good room for development.

The state of the OLED TV industry

In today's OLED TV market, LG has a near-monopoly position. In 2021, LG Display will be the only OLED TV panel supplier in the world, of which 82% of its production will be supplied to LG Electronics and Sony, and the remaining part will be given to other TV manufacturers such as Hisense, Skyworth, and Xiaomi. Last year, LG's OLED TV shipments reached 4.04 million units, with a market share of 62%, and it has the absolute right to speak in the OLED market. With the improvement of its production capacity and yield rate, LG is preparing to put more specifications of OLED TV panels into the market this year, ranging from 42 inches to 97 inches in size, and the price will also cover a wider range. Sony also occupies 20% of the OLED market. Thanks to its self-developed image processing chips and excellent image quality tuning technology, Sony's high-end TVs have always had a very good reputation. With LG's ample supply of OLED panels, it helped it quickly capture the majority of the OLED market. Only LG and Sony have taken 80% of the market share. Although Xiaomi, Skyworth, Hisense and others are also actively deploying OLED TV product lines, it is difficult to make too much waves. (Source: Sony official) Originally, Samsung also signed a supply contract with LG, but due to the delay in the supply of WOLED panels displayed by LG, the Samsung S95B was delayed and the sales were not as expected. As a result, Samsung lowered its annual shipment target from 2.5 million to 1.5 million, and LG lowered its OLED panel shipments this year accordingly. Affected by this, Samsung decided to increase the production capacity of its own QD-OLED panels by 30% to ensure a stable supply. At the beginning of July this year, the yield rate of Samsung's QD-OLED panels has also increased to more than 85%, and the ramp-up of production capacity should be much easier. As the world's largest TV brand, Samsung ranked first in the world with a market share of 21% in the first half of this year, significantly ahead of LG's 12.3%. However, in the OLED TV market, Samsung has almost no right to speak, and it is not possible to purchase panels from LG in time. If Samsung wants to quickly gain a larger share of the OLED TV market, it must produce its own panels and influence LG's sales through price advantages. Samsung is developing a stacked QD-OLED panel that removes a glass substrate to save manufacturing costs and make the screen thinner. This technology is expected to help Samsung save 20% to 25% of production costs, and commercial mass production is expected in 2024, which may give Samsung QD-OLED TVs a price advantage. On the side of domestic TV manufacturers, although Xiaomi, Skyworth, Hisense, etc. have launched OLED TV products, but because they cannot get the best screen from LG, the products can only be regarded as low-end in the OLED TV market. Moreover, limited by LG's production capacity and panel costs, it is difficult for them to impact sales by lowering the price, and the market power is still in the hands of LG. Even so, Xiaomi still sells OLED TVs at a price of 5,000 yuan, which greatly reduces the threshold for users to try early adopters, which greatly helps the popularization of OLED. (Source: Xiaomi official) The current OLED TV market is completely controlled by Korean panel manufacturers, and domestic TV manufacturers can’t get any benefits at all, but in order to expand their own OLED TV product line, they have to purchase panels from LG. If you want to get rid of the current predicament, you still need to wait for BOE and other domestic panel manufacturers to make breakthroughs in OLED TV panel technology. It is reported that BOE plans to launch mainstream OLED panels such as 55, 65, and 75 inches this year. The price of domestic OLED TVs is expected to be further reduced, and it may also be able to compete with LG for market share.

OLED TV's development prospects are not ideal

Once domestic OLED TV panels are developed, OLED TVs will be popularized rapidly, and prices will also increase is pulled low. Compared with panel manufacturers such as LG and Samsung, domestic OLED panels may be slightly inferior in terms of picture quality and technology, but they can definitely be beaten in terms of cost performance. If you think OLED will be the mainstream of the times because of this, then the reality may disappoint you. The picture quality and color of OLED TVs are indeed very outstanding, but there are still many disadvantages such as short service life and easy screen burn. Xiaolei thinks that its future development potential may not be as good as that of mini LED and Micro LED. At present, OLED has attracted much attention, mainly because the mini LED is not yet fully mature, and the mass production is difficult and the cost is high, and it is difficult to promote it to the market on a large scale. But at the technical level, mini LED is actually ahead of OLED. It has the characteristics of ultra-high contrast and ultra-high brightness of OLED, and also has the advantages of strong LCD durability and long life, which is equivalent to combining the advantages of LCD and OLED. together. The display industry is actually more optimistic about mini LED technology, and even Apple has invested heavily in this technology, and its "ultimate form" Micro LED is even more hopeful. Instead of vigorously promoting OLED, it is better to invest more in research and development of mini LED. (Source: TCL official) TCL has launched several TV products with mini LED panels, which are not much worse than OLED TVs on the market in terms of picture quality, and their price is slightly better than OLED. In the future, as the mini LED technology becomes more mature, the panel light control division becomes more precise, and there is still a lot of room for improvement in TV picture quality. It is only a matter of time before it surpasses OLED. In terms of impacting the high-end, mini LED still has greater advantages and potential than OLED. If you want to wait for the price of OLED TVs to continue to drop and eventually replace LCD TVs, that is also not realistic. No matter how to improve and optimize, the cost of OLED is definitely higher than that of LCD. In the low-end market, the status of LCD TV is almost unshakable. It is estimated that it is difficult for OLED to continue to expand its market share with the help of price advantages. Samsung and LG are definitely not willing to put OLED TVs in the low-end market. Therefore, OLED TVs are currently stuck in a relatively embarrassing situation. The low-end cannot go down, the high-end potential is insufficient, and the development path is not particularly smooth. (Source: LG official) In the field of OLED panels, the strength of domestic manufacturers is indeed not as good as that of Samsung and LG. Therefore, if you want to have a higher voice and occupy a larger share in the future panel market, you may need to come up with stronger products or technologies, and mini LED gives such an opportunity. Today, BOE and TCL have achieved mass production of mini LED panels, and next year should see more and more mini LED TV products. Samsung and LG are still vigorously promoting OLED, and the two have divided two different tracks. If domestic manufacturers can occupy an absolute advantage on the new track, it is not impossible for them to compete with Samsung and LG in the future.

(Responsible editor:Power Supply)

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