Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) has launched first OLED TV in which it has adopted ultra thin technology. However, there are some production hurdles faced by the company which will surge the cost of these TVs at a time when the LCDs are getting more affordable, says a report from Reuters.
OLED Technology Paid Off in Smartphones
Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) has released its OLED TV to the market and has taken up the challenge in the display market. Earlier, the world’s biggest TV manufacturer used organic light-emitting diodes in its smartphones, which turned out to be a huge success and the market share of Samsung was increased along with earnings. However, the momentum of profit is not that fast when it comes to big screens.
Odey Asset Management's Special Situations Fund was down 3.2% in March, compared to its benchmark, the MSCI World USD Index, which was up 3.3%. Through the end of March, the fund is up 8.7%, beating the benchmark's return of 4.9%. Q1 2021 hedge fund letters, conferences and more Odey's Special Situations Fund deploys arbitrage and Read More
OLED Better Than LCD
OLED technology is said to be a better technology than liquid crystal display screens. OLED technology offers better picture quality, better picture resolution, quicker response times and high-contrast images. With this technology, a curved television can also be made, which according to manufacturers is a better experience to watch.
Samsung Production Concerns
Production is, however, a key hurdle for Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930). The Korean firm is manufacturing OLED screens for TVs, but according to some analysts the yield is only 30 percent as only 3 out of 10 screens come out perfect. The remaining seven suffer defects due to difficulties in spreading organic light emitting materials evenly throughout large screens.
Some analysts hold the view that while no doubt OLED is a big innovation, it will not affect the LCD market to the same extent that LCD affected the large cathode ray tube sets and completely ousted those within a span of few years.
“They are not sufficiently transformational to trigger a complete switch-over from LCDs,” said EO Kyu-jin, an analyst at IBK Securities. He also said that OLED TV will only contribute less than 1 percent of the 200 million plus global TV market.
Estimated Sales Number Optimistic
Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) also said that the industry’s estimated sales figure is little more optimistic than reality. Research firm Display Search has estimated that sales figures of the OLED television will be 50,000 this year and 600,000 in the next fiscal year. By 2016, the number will reach 7million.
Samsung Executive Vice President Kim Hyunsuk said that Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) has only just launched its first OLED TV and will pay attention to consumer responses, along with watching the market demand for the product.