Televisions are likely to cost more in the coming months. The tectonic plates beneath this market are indeed shifting, with China in a strong position to dictate LCD panel prices. Korean manufacturers are pushing towards the high end by focusing on OLED, but here too China has a response.
Samsung and LG are seeking to impose OLED technology in their televisions: the technology actually offers much better performance in terms of display and also energy consumption. But it also causes an increase in costs which has repercussions on the price of televisions… and on the wallets of spectators.
China puts pressure on Korean manufacturers
Shipments of OLED panels are expected to reach 6.48 million units in 2024, which will represent an increase of 22% in 2024, according to data from DSCC. In this high-end sector, Korean manufacturers are threatened by the rise of Chinese competitors, who have chosen to focus on Mini LED and QD-LCD, two technologies based on LCD which significantly improve brightness and rendering. colors.
The problem is that the entry level is not much more attractive for Samsung and LG. In this area, it is China which imposes its law: despite weak demand, the country’s suppliers have managed to stabilize prices by adjusting their production downwards. Samsung’s LCD panel supply costs were $4.2 billion in the first three quarters, 35% higher than last year during the same period. The increase in costs has even reached 50% for LG!
Korean manufacturers have not helped their case by ceding their LCD production lines to Chinese rivals. Last September, LG sold its Guangzhou factory to TCL; Samsung and Sharp have already stopped their LCD production. They will now have to accelerate the development of OLED innovations to avoid losing market share to China.
???? To not miss any news from 01net, follow us on Google News and WhatsApp.
Source :
Digitimes
Belgium
