The share of 4K ultra high-definition (UHD) TVs in 55” and larger TV sales has exceeded 50% for the first time.
Key factors leading to this phenomenon are the drastic price reduction as a result of competitive large-screen 4K UHD TV release by TV makers, an increase in the demand and continuous increase of contents to enjoy UHD picture quality to the full.
According to the industry on the 21st, the share of UHD TVs in large-screen (55” or larger) TV market exceeded 50% this year. “For 55” or larger models, more customers are after UHD TVs,” said a sales agency source in charge of TV distribution. “It can be regarded that the percentage of UHD TVs exceeded 50% as of the end of the fourth quarter last year.” This source added, “We forecast that UHD TV’s share in large-screen TV market will increase up to 75% this year.”
In fact, according to Lotte HIMART, the percentage of UHD TVs in 55” and larger TV sales increased rapidly in the second half of last year and it reached 50% in the fourth quarter. Although UHD TVs’ share in the fourth quarter of 2013 was only 5%, it soared to 25% following a special demand season of the FIFA World Cup Brazil in the first half of last year and increased additionally by 15% points and 5% points in the third and the fourth quarters respectively.
Of Lotte HIMART’s TV sales, UHD TVs represent around 30% share based on sales performance in the fourth quarter last year. This figure also increased from 10% in the first quarter of last year to 15% and 25% in the second and the third quarters respectively as a result of an increase in large-size TV sales.
As for UHD TV demand increase, the effect of price cut made a considerable contribution. As not only LG Electronics, but also small-scale companies started focusing on UHD TV, competition intensified and this led to the price drop.
Following FIFA World Cup Brazil, ‘4K’ symbolizing UHD TV became a topic of conversation. Accordingly, global UHD TV market entered upon the time of enlightenment. In addition, factors triggering price drop were generated according to the realization of ‘economy of scale.’ When Samsung Electronics and LG Electronics as well as Sony released popular 55” UHD TV models in the first half of 2013, the prices were set around KRW 6 million – 7 million. However, the prices were lowered repetitively over time and, currently, low-end models of large enterprises are sold at KRW 1 million – 2 million. Small companies’ products can be purchased at approximately KRW 1 million.
Continuous increase of UHD contents by cable TV industry has also served as a momentum to accelerate large-screen UHD TV demand. TV market, which focused on 40” products, is shifting rapidly to 55” and larger TVs as consumers’ perception spreads that they need TVs larger than 50” in order to enjoy UHD picture quality to the full.
“Reflecting the trend that consumers’ interest is drawn to UHD TV, we are displaying large-screen UHD TVs at the most noticeable part in the store,” said the sales agency source. “We recommend 55” UHD TV to the soon-to-be married couples.”
The popularity of UHD TV is forecast to increase all the more this year. According to a market surveyor Display Search, global UHD TV sales volume this year will increase by 153% from last year to 32.25 million. However, the industry predicts that the actual demand will increase further considering the popularity of UHD TV as of late. In fact, Display Search is continuously increasing its observation value as the level of interest in UHD TV has soared recently.
“In addition to TV makers, broadcasting companies and content developers started mentioning UHD. As a result, customers are looking to buy UHD TV first,” said a LG Electronics source. He forecast, “As UHD TV sales increased, the screen size of TVs customers are after will increase further.”