LG aiming for Chinese OLED TV success
OLED marches on globally
LG Display is opening a new OLED manufacturing plant in Guangzhou
later this year and has its eyes firmly set on the Chinese TV market.
The South Korean electronics giant has been presenting at the China Information Technology Expo 2019 (CITE 2019) ,currently taking place in Shenzhen, and took the opportunity to confirm plans to expand its presence in the Chinese OLED market.
CITE is one of the largest exhibitions in Asia and this year involves 1,600 companies including LG’s competitors for the OLED market such as Chinese TV manufacturer, Hisense, who are shifting their strategy to now include OLED alongside their more traditional LCD sets. LG’s announcement is undoubtedly a warning shot to remind these would be pretenders-to-the-OLED-crown just who’s boss.
Part of LG’s own strategy is to re-align its own focus towards OLED as demand and profitability of LCD wanes. OLED televisions are seen as firmly in the ‘premium TV’ bracket (LG define this as any TV over $2K) so potential profit margins are higher and there are far more untapped markets globally on offer.
Currently, China only accounts for 10% of LG Display’s worldwide OLED panel sales but the company fully anticipates that China will become an influential market since OLED adoption rate is still below 30%.
Ko Kyu-young, head of global promotion for the LG Display’s TV business unit, said, “In Europe and Japan, OLED TVs are already mainstream in the premium TV market,” He went on to add, “Beginning this year, OLED panel adoption will start to actively grow in the Chinese TV market, in time with the opening of our Guangzhou factory.”
The factory is due to open later this year, starting operations in the third quarter with plans to initially produce 60,000 OLED sheets which can each generate six 55-inch TV panels.
Figures provided by IHT Markit demonstrate that 270,000 OLED TV sales in China are expected this year, which is an increase of 70%, before jumping to one million by 2021. By 2020, China will account for approximately 22% of global sales and leapfrog Europe and Japan as the world’s largest OLED TV market.
All good news for LG if their business strategy goes according to plan.
In related OLED news, LG recently confirmed plans to release a 48-inch OLED TV much to the delight of consumers for whom space is a constraining factor when looking to purchase a TV. LG also announced that they had exceeded 4 million sales globally of OLED TVs since they first went on sale in 2013.
Image Source: koreajoongangdaily
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