Aggravation for the Set Industry Due to Falling Exchange Rates
It is expected that Samsung Electronics, LG Electronics, and other domestic enterprises will capture 40% of the TV market this year, using aggressive sales policies. LG Display and Samsung Display focus on the strategy of expanding premium panels, mainly large panels and 4K Ultra-High-Definition(UHD, 3840×2160). On the contrary, the set industry has a possibility of adjusting business due to falling profits.
Market investigation enterprise IHS predicted like this at the ‘HIS Display Searh FPD Conference’ held on March 26th at the ELTOWER in Yangjae-dong, Seoul. In the TV market this year, aggressive share expansions of Samsung Electronics and LG Electronics were predicted. IHS predicted that Samsung and LG, which had each captured 20% and 14% last year, will raise sales to 24% and 16%. The total sales of this year’s world TV market was estimated at 239 million TVs. Among this, Samsung and LG are to sell 95.6 million. The possibility for domestic businesses to mediate panel supply and demand, and the set market against Chinese industris’ attacks has also been brought up.
However, the set industry was predicted to go through profit aggravation as worldwide rates of exchange against the dollar are falling. Jung, Yoon-sung, IHS director said, “The exchange rates of major countries have dropped over 10% this March, compared with last October. The damage was bigger for the emerging market including Russia, which is over 30%.
TV manufacturer profits in last year’s second half were also directly hit. IHS predicted last year’s third quarter mid-0% to the fourth quarter early-1% for Samsung Electronics Video Display(VD) Division’s operating profit rate, and 3% to 0% for LG Electronics HE(Home Entertainment) operation headquarters’ during the same period.
This year’s key words for the display market are Large Area and 4K. IHS analyzed that Samsung and LG are pursuing profitability by leading markets through premium products against falling Average Selling Price(ASP) for panels, and differentiating elements such as 4K and curved surface for sets.
LG Display and Samsung Display kept World’s top two last year, securing 24% and 23% share per panel area. The supply for over-60-inch-panels this year from both companies were predicted to be increased by 62%, and 50-inch-range panels 18%, compared with last year. However, under-32-inch-panels were predicted to be reduced by over 20%. As enlarging of sizes sped up, over-45-inch-TV shipments exceeded 70 million last year.※ 4K TV Panel Shipment Progress (Unit: million, Data: IHS)>
Senior Reporter Kim, Seung-gyu