Samsung Electronics believes Ultra HD (4K) Quantum Dot (QD) TVs will have a stronger presence in the TV industry over OLED during 2015 as OLED costs remain high, according to Samsung representatives quoted in a report by South Korea-based Money Today.
Samsung has spoken extensively on its outlook for OLED TVs over the next few years, often stating it believes the market will remain limited due to high costs associated with producing OLED TV panels as a result of low production yields. The paper quoted several Samsung representatives further stating at a recent press conference that the company stands by its past remarks and that OLED will not have competitive pricing for the TV market in 2015.
Despite these recent words from Samsung, Korea-based ET News recently cited sources saying that in an effort to bump up profits in Samsung Display's panel business and re-establish Samsung's presence in the large-size OLED panel industry, the company is in discussions to approve new investments for producing OLED TV panels.
The report said the Samsung Group is proposing Samsung Display shift production focus to further include OLED TV panels as the company fears profits from its LCD panel business will continue to fluctuate due to rising influence from other makers in the industry, most notably from China. The report said Samsung recently halted plans to invest in expanded LCD panel production on 10.5G facilities and may shift to OLED TV panel production instead. However, the company is also considering shifting production to its A3 facilities or switching OLED production for other applications at its V1 fab to produce WRGB OLED panels.
Samsung currently holds a 97% market share for OLED panels used in mobile applications and believes it needs to re-stake its presence in the large-size OLED display industry where it currently is almost nowhere to be found, the report noted. However, such investments may be aimed at expected demand in 2017 and onwards when OLED TV pricing is expected to drop significantly, noted market observers. |