As flatpanel TV prices continue to plummet, TV makers are searching for new strategies to build value into the low-margin category.
After dangling OLED (organic light-emitting diode) in front of journalists during the Consumer Electronics Show (CES) and its 2007 line show in February, Sony announced plans to bring an 11 inch model out this fall in what could be a transition to a more profitable flatpanel technology.
OLED promises higher contrast and better color saturation over LCD in a thinner form factor that doesn't require a backlight, although it's too early to tell whether the company can achieve the necessary manufacturing efficiencies to compete with other flatpanel technologies.
At the other end of the spectrum, Hitachi and Panasonic parent company Matsushita announced plans in May to supply each other with 85 inch and 103 inch plasma displays. Under the terms of the deal, Panasonic will provide Hitachi 103 inch plasma panels this year, and Hitachi will supply Panasonic with 85 inch plasma panels in 2008.
Other TV makers are putting on the glitz. In a recent article, Forbes noted that the LG Electronics 71 inch plasma, which listed for $70,000 in early 2006, took a freefall to its current $15,000 price. But the company added a little bling to bring in the luxury crowd. A 24-karat gold version of the 71 inch goes for $80,000.
Plasma panel shipments were down for the first time in first-quarter 2006, due largely to an increase in market share for LCD, according to market research firm DisplaySearch. Larger screen sizes should provide an uptick in plasma sales later in the year.
Larger screen sizes hold opportunity but risks remain for chasing the larger-screen LCD market. According to the report, the LCD TV market has grown by migrating users to larger screen sizes. Moving to larger screen sizes has been successful so far for LCD suppliers, but that "this strategy could generate challenges going forward."
Meanwhile, Toshiba and Canon each scrapped plans for a fourth-quarter launch of SED (Surface-Conduction Electron-Emitter Display) TVs, which the companies hoped would bring CRT quality to the flatpanel space-along with more attractive margins.
Canon cited precipitous price declines in the flatpanel market as the culprit and said more efficient production techniques would have to be designed and implemented in order to make SED competitive in the market.
Courtesy: Sound & Video Contractor
