Samsung shows how to push surface TV?

Yesterday, Samsung Display and Samsung Electronics, Hisense, LeTV, TCL and other 11 TV and display companies form a joint camp, pushing surface products.

For Samsung Display, its panel technology is the world's leading and is firmly on the upper reaches of the industrial chain. It is the object of the vast majority of downstream terminal enterprises. Why is it necessary to place such a large array and push surface products?

It seems that Samsung showed three reasons behind this move:

One is to increase panel revenue.

Global panel production was once in a state of excess before panel companies had a hard time. Among the four companies with higher market share, Samsung Electronics, LGD, Taiwan Innolux and Taiwan AU Optronics, two Taiwanese companies have sustained losses since Q4, and LGD’s operating profit also decreased by approximately 90% year-on-year. Samsung Last year, the panel business’s profit fell to 300 billion won in Q4, down from 470 billion won in the same period last year. Taiwan's four major panel makers had an overall loss of more than RMB 3.6 billion in Q1 2016.

However, since Q2 2016, panel prices have started to stabilize and pick up, and Samsung’s panel business has also gradually improved. Samsung Q2 Financial Statements showed that this quarter's display panel business consolidated revenue of 6.42 trillion won this quarter, operating profit of 0.14 trillion won, which is due to the growth of small-size OLED panel shipments and the production of new LCD TV panel production technology to achieve of.

This shows that Samsung has increased the production capacity of new LCD panels, which must include curved products, so it is necessary to join downstream terminal companies to digest production capacity and continue to improve profitability.

The second is to suppress the OLED camp.

As we all know, Samsung is one of the earliest companies to develop OLED display technology. However, Samsung is currently only making efforts in OLED panels for small-sized mobile phones, and has not been able to respond to large-size OLED panels. The reason is that Samsung believes that OLED technology is not mature and is not optimistic about the short term. There are also reasons that Samsung hopes to extend the LCD era and continue to maintain its leading position and enjoy high profits. Regardless, Samsung does not want large-scale OLED products to be listed on the market.

Therefore, Samsung Display relied on the dominance of the LCD era to unite the mainstream color TV and display device manufacturers to form a surface alliance, continue to deepen the LCD market, but also allows terminal manufacturers can not have more energy and resources to develop OLED. When Samsung Display and Samsung Electronics do not push OLED, a large number of domestic color TV companies and Samsung are bound together to push the liquid crystal surface, LGD and Skyworth's OLED combination will continue to be difficult to continue to effectively expand the camp under Samsung's continuous suppression.

The third is to boost the overall profitability of the color TV industry.

In the era of CRT, the color TV industry was suffering from industry-wide losses because the average unit price was too low and the price war was fought. In recent years, the average price of color TV products has also been declining. There are clear signs of collective losses in the color TV industry. If it does not increase the profitability of the industry, both upstream and downstream industries will face difficulties.

The development of surface products is an effective way for the color TV industry to transform to the high end. According to the statistical data of China Yikang, the unit price of surface products is much higher than that of flat products. For example, although along with the gradual maturity of technology and the large-scale output of the market, curved TVs are rapidly gaining popularity. The retail price gap between the mainstream 55-inch and 65-inch flat-panel TVs has narrowed from an average of 5441 yuan in March 2015 to this year. In June of 2230 yuan, but the price difference of more than 2,000 yuan still allows color TV companies have greater room for profit.

It is to see the value of surface products, color TV companies are the first to join the surface camp. According to data from Yikang, up to now, there have been 21 brands, 13 sizes, 155 models of surface products on the color TV market in China, and the penetration rate of large-screen curved TVs with 55 inches or more has reached 26%. And curved TV as a symbol of high-end, but also contributed to nearly half the sales of 65-inch TV size.

Although Samsung has shown that it has used its leading position and united a large number of terminal enterprises to push for curved surface products, the penetration rate of surface products is also rising. However, from the overall view of the color TV market, surface products still have a lot of room for development, accounting for overall The ratio is not high enough.

According to Zhong Yikang, the sales volume of curved TV will reach 2.3 million units in 2016, and it will reach 4 million units next year; at the same time, the surface displays will also have larger sales growth as the popularity of high-end Internet cafes in China is expected to reach 200 sales this year. Million Taiwan will have 5 million units next year.

Judging from the TV market alone, China's color TV market each year sales of 40 million -50 million units, which means that the market penetration of surface products this year is less than 5%, next year is expected to reach 10%.


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