Chinese Companies Putting Pressure on Korean Manufacturers as OLED TV Market Blossoms

Next generation OLED TV sales have soared 317% during the first half of 2015, according to a report from Business Korea.

Even though OLED TV sales grew exponentially, prices remain the TVs Achilles heel, and make up less than 1% of market share.

Citing IHS iSuppli statistics, OLED TV sales during first half of the year have soared 317% to 75,600 sets, exceeding the 18,000 TVs for the entire year of 2014.

LG TVs accounted for 90% of OLED TV sales during first half of the year, a Money DJ report cited an analyst saying. However, the market is also attracting Chinese contenders including Skyworth, Changhong, Haier Group, and Hisense. Initially, LG Electronics was the sole OLED TV manufacturer, and had a 100% market share.

Previous cutthroat pricing experiences in the LCD panel market led large Korean manufacturers Samsung and LG to turn towards highly technical OLED technology to keep ahead of competitors, according to a report by Korea Herald in early August.

IHS research also reflected this general observation that oversupply situation in LCD panel market spurred Korean manufacturers to invest in OLED R&D. To avoid falling into the same cutthroat pricing situation in the LCD market, manufacturers aim to acquire a leading position in the OLED market.

Global LCD panel sales is projected to decline 2% to US $12.90 billion this year, according to IHS research results. In comparison, OLED panel industry is the only sector showing growth potential, and revenue growth is expected to increase 36% to US $11.8 billion. David Hsieh, the research institute’s Director of Analysis & Research projected OLED sales will rise, due to smartphone OLED panel demands and increased OLED panel shipment volumes. OLED will also be widely applied in tablets and Apple Watch wearable devices.