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2017 will be an important year to be able to emphasize the innovation of OLED to consumers

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<Lee Woo-keun, a senior researcher at LG Economic Research Institute>

Lee Woo-keun, a senior researcher at LG Economic Research Institute, predicted that the year 2017 will be an important year to be able to emphasize the innovation of OLED to consumers, in the seminar for the 2016 OLED evaluation held at the Yeouido Small & Medium Business Center in Seoul, hosted by UbI Research on last December 2.

He added “LG is leading the OLED TV market in the premium TV market ahead of next year’s CES, but we will have to keep an eye on the impact of Sony’s joining” as one of the notable issues in large-sized OLED panels, and he continued “as there is still a fundamental expectation for Sony’s image quality among existing consumers, we will have to pay attention to what innovative appearance Sony’ OLED TVs will show and how they can appeal to consumers.

Referring to the adoption of OLED panels in Apple’s iPhone8 (tentative name) in the mobile phone market, as a small and medium issue, he said “it is important how to realize OLED display on Apple iphone 8, and how much impact it will have on consumers through this”. He said “if we could not show the innovation distinguishing it from existing LCDs despite adopting OLEDs, consumers’ expectations for OLEDs may be diminished,” emphasizing that it should draw meaningful responses to OLEDs from consumers’ perspective .

It is expected that Apple will launch iPhone applying flexible AMOLED panels in 2017, and Sony is also being confirmed to continuously review its entry into the OLED TV business. In 2017, it is expected that the number of set-makers launching OLED-applied products will increase more. In the situation that consumers are expecting a ‘completely new thing owned only by OLED products’, which is entirely different from existing LCD products, through various media reports and rumors, the year 2017 seems to be an important year to emphasize the innovation of OLED and to promote its merchantability.

LG Electronics, OLED TV volume of sales 2 times in the 3rd quarter

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LG Electronics revealed that OLED TV volume of sales was enlarged two times than last year through the conference on the third quarter performance having been progressed on the 27th, and currently OLED TV occupied over 10% among total TV sales. Also they expect that volume of the fourth quarter will be increased two times vs. the third quarter.

Regarding countermeasures on quantum dot TV of Samsung Electronics, they have no notion of competing prices with OLED TV, and emphasizes that they will strengthen recognition such like best TV is OLED TV by thoroughly sustaining premium strategies. They explains that market position of OLED in the market of over USD 200, or USD 300 has been actually increasing rapidly

HE Business Division achieved operating incomes (381.5 billion won) and sales profits of top levels (9.2%) in the third quarter. Sales amount was 4 trillion and 141.5 billion won, and there was not large change with previous quarter (4 trillion and 157.2 billion won).
LG Electronics forecasts that TV demands will be increased due to entering high-demand season in the fourth quarter, and needs on premium products such as OLED TV and UHD TV will be expanded further vs. previous quarter centering on the advanced market especially. Though profitability is expected to be decreased vs. previous quarter owing to effects from increases of panel price and expanded marketing expenses, they reveals their willingness such like responding to seasonal demands on large-size premium products including OLED TV and UHD TV etc. will be made successfully.

Meanwhile, according to UBi RESEARCH, they forecasts that OLED TV in premium TV market will achieve high-speed growth while forming the market of 69.1% in 2012 from 16.7% in 2016.

WOLED will lead premium TV market after 2020

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UBi RESEARCH held ‘An Analytical Seminar on OLED Market Entry Feasibility of QLED and Solution Process’ on the 14th at Seoul Small& Medium Business Center.

CEO Lee Chung-hoon of UBi REARCH said “OLEd TV will show 16.7% market share in 2016 at the world premium TV market, and lead premium TV market with 68.1% share in 2020.” and analyzed such like “LCD TV could not follow OLED TV performance excluding low price and high solution.”

China is threating domestic LCD market in current wide TV market while displaying material superiority to LCD industry, and cost-effective rate of the wide TV is losing ground to Chinese products too. Thus, LG Display and LG Electronics did successful market entry after having equipped with competiveness in the premium market through OLED TV, and they are expediting mass-production investment and technical development aiming at dominating and popularizing premium TV market.

The most important factor in popularizing OLED TV is price. ASP (average sales price) of UHD OLED panel based on second quarter of 2016 is USD 720, and FHD OLED panel is approximately USD 450. It was expected that UHD OLED panel could lead TV market if it secured about USD 500.

Development to adopt solution process methods has been progressed in order to lower price of wide OLED panel in the industry, and QLED technology as an alternative of OLED TV is becoming an issue nowadays.

In relation with this, CEO Lee Chung-hoon forecasted like “As much as being closed to commercialization due to development of solution process OLED or QLED technology, WOLED technology becomes to be developed one step more, so market entry of solution process OLED and QLED will not be achieved easily. Specially, there are many technical issues in QLED which is considered as next OLED by Samsung Electronics, and 10 years of research will be required further.”

Also, he emphasized that the technology of being able to reduce cost vs. WOLED such as lessening layer numbers dramatically etc. should be developed in order to enter solution process OLED and market successfully, and the entry shall be made by targeting low-end market. In particular, he analyzed that WOLED would lead premium TV, and solution process QLED and QLED occupy the low-end market after 2020.

<TV Market Scenario after 2025 (Source: UBi RESEARCH)>