LG Electronics is set to become a ‘million seller’ in this year by surpassing yearly sales volume of 1 million OLED TVs. It sold about 300,000 OLED TVs and 650,000 OLED TVs in 2015 and 2016 respectively and is hoping to sell more than 1 million OLED TVs in this year. Its strategy is to strengthen its position in premium TV markets by increasing the number of sales volume of OLED TVs.
According to industries on the 24th, LG Electronics has set a goal to sell more than 1.3 million OLED TVs in 2017. If LG Electronics reaches this goal, it will become the first TV manufacturer to sell more than 1 million OLED TVs in single year.
Although LG Electronics was hoping to sell at most 1 million OLED TVs in last year, it was only able to sell about 650,000 OLED TVs as OLED TV markets did not grow as it expected.
Although it was not able to reach its sales goal, growth rate of sales of its OLED TVs is very steep. LG Electronics succeeded in mass-producing large OLED TVs in 2013 for the first time in the world by introducing 55-inch OLED TV. It sold more than 70,000 OLED TVs in 2014 and sales volume quickly increased to about 300,000 in 2015. It was able to double the sales volume of 2015 in 2016 by selling about 650,000 OLED TVs and is planning to also double the sales volume of 2016 in 2017.
Reason why LG Electronics might be able to sell more than 1 million OLED TVs in 2017 is because yields of LG Display, which supplies OLED panels, have improved greatly. Improvement in yields leads to reduction of unit price of a panel and this is why LG Electronics is expecting that this year will be a tipping point of ‘globalization of OLED’ by selling more than 1 million OLED TVs. LG Display is going to increase shipment of OLED TV panels, which was about 1 million panels in 2016, up to 1.8 million panels in 2017.
Forecast of OLED TV markets is also bright. Market research company called IHS is predicting that about 1.4 million OLED TVs will be sold globally in 2017 and that this number will increase up to 5.2 million in 2020. Some also predict that 54% of premium TV markets in China in 2018 will be OLED TVs.
It is likely that aspect of global OLED TV markets will change greatly. Until last year, LG Electronics had practically led global OLED TV markets by occupying 95% of market shares of global OLED TV markets. However it is expected that these markets will start to grow rapidly this year as many Chinese and European TV manufacturers are going to start joining OLED TV camp and as SONY is planning to start selling OLED TVs during second half of this year. If global OLED TV markets start to grow, it will be advantageous for LG Electronics that has upper hands in these markets. It is predicted that number of OLED TV manufacturers will increase from 4 in 2016 to 9 in 2017.
LG Electronics is also looking to build up its position in premium TV markets. LG Electronics’ Ultra OLED TVs were selected as best TVs as they were able to break highest TV score ever by Consumer Report, which is America’s most prestige magazine, for two years in a row. Its TVs took first place to fourth place of Consumer Report’s top TV ranking and this is a circumstantial evidence that its TVs are the world’s best in quality and performance.
LG Electronics is looking to break its record once again this year by launching its new product called ‘LG Signature OLED W’. This TV was introduced for the first time at ‘CES 2017 that was held in Las Vegas in early this year and drew many interests. Its thickness is only 2.57mm which allows it to implement an innovative design and it can be attached to walls like wallpaper.
“OLED TVs have grabbed leadership in premium TV markets as they occupied 40% and 50% of TVs that cost more than $2,000 and $2,500 respectively in 2016.” said a representative for LG Electronics. “Through fair competitions between OLED TV manufacturers and differentiation from LCD TVs, we are going to solidify our position even more in premium TV markets.”
Staff Reporter Kwon, Keonho | email@example.com
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