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LG Electronics, Not Selling OLED TV? Or Can’t Sell?

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OLED TV business that LG Electronics ambitiously prepared for is remaining at a standstill for more than 2 years. Korean media is reporting that the OLED TV sales in Korea reached 3,000 units per month, but this figure is too weak.

 

The money that LG Display have invested in line establishment for OLED panel for TV is already exceeding approx. US$ 1,400,000,000. Annual depreciation cost for equipment investment alone, excluding cost of labor and material, is approx. US$ 280,000,000.

 

Considering the current cost for FHD OLED TV is approx. US$ 1,800 – 3,300, monthly sales of 3,000 units in Korea only result in approx. US$ 9,400,000. With approx. 10,000 units per month being sold in the world, monthly revenue is merely US$ 23,000,000.

 

Although LG Display is aiming for 600,000 units of OLED panel for TV shipment this year, with LG Electronics’ first quarter world OLED TV sales of approx. 30,000 units, there is concern that only 100,000 – 200,000 units will be sold in 2015.

 

It is difficult to understand whether this uncommonly low sales of LG Electronics’ OLED TV is because they are not selling them or unable to sell them.

 

It seems plain that the initial price of OLED TV in 2013, approx. US$ 14,000, was set in order to not sell. LED TV at the time was being sold at approx. US$ 2,800, and the 5 times more expensive price was too high to be considered a normal premium price. Consequently, the 2013 OLED TV market stopped at around 10,000 units, and in 2014 remained around 100,000 units.

 

At this point, feasible production rate for LG Display’s 55 inch FHD OLED panel needs to be compared. In 2013, LG Display’s M1 line yield rate was approx. 40% with annual possible production of 50,000 – 100,000 units. As the yield rate increased to 80% in 2014, it is estimated that 200,000 units or more would have been produced.

 

Compared to LG Display’s investment cost and production potential, the LG Electronics’ OLED TV sales results are too shabby.

 

Of course, as the current main product on the market is FHD, when the newly released UHD OLED TV market actively opens the figures could always change. However, with 55 inch UHD OLED TV having to compete with Samsung Electronics’ SUHD TV, the market is not so easy. SUHD TV costs approx. US$ 3,700, and UHD OLED TV costs about 25% more with US$ 5,100.

 

Compared to the initial price of FHD OLED TV, approx. US$ 14,000, 2 years ago the UHD OLED TV price is low enough to be quite reasonable. However, with the performance of past 2 years it appears that LG Display might be inadequate to widely open the OLED TV market.

 

It makes one wonder how Samsung Electronics became the world leading company with their OLED panel equipped Galaxy series achieving 20% mobile market share, a market that used to be dominated by LCD panel.

LG Electronics Actively Release 55 inch UHD OLED TV, Begins Intense Competition with UHD LCD

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LG Electronics’ 55 inch UHD curved OLED TV, soon to be released, have been revealed on USA’s Amazon.com (www.amazon.com) in the 3rd week of April for the first time. With the price of US$ 5,499, it is US$ 3,500 lower than 65 inch UHD curved OLED TV (US$ 8,999), and US$ 1,500 higher than Samsung Electronics’ equivalent 55 inch curved SUHD TV (US$ 3,998).

 

Comparing LG Elec.’s 55 inch curved FHD OLED TV and 55/65 inch curved UHD OLED TV with Samsung’s equivalent LED TV and SUHD TV in terms of price on Amazon.com in the 3rd week of April, the price difference are shown to be approx. US$ 1,100 for 55 inch FHD, US$ 1,500 in 55 inch UHD, and US$ 4,000 for 65 inch UHD.

 

The release price for this 55 inch UHD curved OLED TV is more reasonable than previously released models and future market for next generation TV is expected to be fierce; 55 inch FHD curved OLED TV was released at US$ 15,000, and 65 inch UHD curved OLED TV was at US$ 12,000, which were more than twice the price of LCD TV of equal specification.

 

As the price of FHD curved OLED TV is falling by approx. 60% annually since its release, UBI Research’s White OLED Display Annual Report (published on April 15) forecast that UHD curved OLED TV will be able to compete with Samsung’s SUHD TV in terms of price if they can achieve FHD OLED TV level of yield.

 

On the other hand, during the 1st OLED KOREA Conference, LG Display revealed that FHD OLED TV panel yield rate exceeded 80% and that they are aiming for 80% of yield for UHD OLED TV panel by the end of 2015.

 

Price Difference between LG OLED TV and SUHD TV

Price Difference between LG OLED TV and SUHD TV

 

LG Electronics’ 55 inch UHD curved OLED TV, www.amazon.com

LG Electronics’ 55 inch UHD curved OLED TV, www.amazon.com

[MWC2015] Smart Watch Market, Struggle Expected in Google OS Sector

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In MWC2015, various companies, including Samsung Electronics, LG Electronics, Huawei, and Asus, exhibited smart watch. Since 2014, Samsung Elec. and LG Elec. began to sell smart watch, Asus and Huawei are shipping smart watch equipped with rigid AMOLED panel. Apple, a latecomer but also strongest rival, is planning to actively sell smart watch, with LG Display’s plastic OLED, from April.

From the outside, all 5 companies have smart watch with AMOLED, but other than Apple which uses iOS, and Samsung Elec. that uses Tizen, the insides of the other 3 companies are the same. This is because they use Google OS. Hence the software of these 3 companies’ products are similar, and without the smart watch exterior the functions are almost identical. The only differentiations are due to smart watch design. Huawei’s smart watch face design is similar to LG Elec.’s, and the back design practically cannot be distinguished from LG Elec.’s products. 150305_[MWC2015] smart watch 시장, 구글 OS 진영 혼전 예상1150305_[MWC2015] smart watch 시장, 구글 OS 진영 혼전 예상

<LG Elec. Smart Watch (left), Huawei Smart Watch (right)>

150305_[MWC2015] smart watch 시장, 구글 OS 진영 혼전 예상2 150305_[MWC2015] smart watch 시장, 구글 OS 진영 혼전 예상3

 <LG Elec. Battery Charger (left), Huawei Battery Charger (right)>

In MWC2015, Google sector showed how difficult it would be for any company to conquer the market.

LG’s Plastic OLED, What’s Next?

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LG Electronics showcased smart car related technology collaboration by supplying components for Gea. Gea, revealed by Italdesign Giugiaro on Mar 3 (Korean Time), in Geneva International Motor Show 2015 (Geneva Palexpo, Geneva, Switzerland) is an autonomous luxury concept car.

LG Elec. and Italdesign’s concept car technology collaboration items are in-car display, tail lamp/camera, and IoT (linked with smart car).

For in-car display, 6 inch HD curved plastic OLED (P-OLED) was used in the front and rear console, and 12.3 inch full HD display was supplied for dashboard and CID (Center Information Display), and the passenger side. 19 inch LCD has been converted into to provide large screen for RSE (Rear Seat Entertainment). As thin and flexible design is possible with plastic OLED, it is suitable for the interior of a vehicle with its various formation. It is also appropriate for automotive display as advantages such as the high contrast ratio and fast response time reduce driver’s eye strain. Therefore, in-car display is estimated to be new application for OLED display in future.

Concept Car, Gea, a technology collaboration product between Italdesign of Volkswagen Group and LG Elec., The Geneva International Motor Show 2015 Source: LG Elec.

Concept Car, Gea, a technology collaboration product between Italdesign of Volkswagen Group and LG Elec., The Geneva International Motor Show 2015 Source: LG Elec.

<Concept Car, Gea, a technology collaboration product between Italdesign of Volkswagen Group and LG Elec., The Geneva International Motor Show 2015   Source: LG Elec.>

 LG Display, panel supplier of LG Elec., have made an announcement of their target to secure 30% of world’s market share in automotive display in 2018, and revenue of approx. US$ 2 billion. In CES 2015, held earlier in the year, they presented 13.1 inch automotive display and new 21.5 inch curved products for dashboard and CID. LG Display is planning to target automotive navigation/dashboard/entertainment display.

[MWC2015] Smart Watch Trend, LG Electronics is On It

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The rapidly rising product to become the key item for IoT industry is a wearable device, smart watch. Various companies are already producing numerous products for the smart watch market. Beginning with smart band, the majority of smart watches had square face, but since LG Electronics joined this market, the trend started to change into a classic watch design.

In 2014, LG Elec. revealed G Watch in various events and became involved in its sales. Following the existing watch, they employed high-end sports watch design. While many experts estimated smart device with differentiated design from existing watches would become popular, the actual market responded to a round faced watch design, more familiar to the public after more than 100 years of use.

Subsequent to G Watch, LG Elec. revealed LG Watch Urbane in MWC2015. Compared to G Watch, Urbane arrived with higher class appearance.

Chinese set company Huawei introduced a smart watch with round shaped AMOLED in MWC2015, reacting to the success of G Watch. Samsung Elec. is also expected to release circular faced device for the next smart watch.

150303_[MWC2015]Smart Watch Trend, LG Electronics is On It<Urbane, LG Electronics>


150303_[MWC2015]Smart Watch Trend, LG Electronics is On It1<Huawei watch, Huawei>

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