The global organic light emitting diodes (OLED) TV market is rapidly growing, driven by higher definition and competitive prices.
According to market research firm IHS Markit on August 7, the size of the global OLED TV market is expected to grow to 2.54 million units this year from 300,000 units in 2013. The figure increased by eight times just in five years. It is also forecast to reach 9.35 million units in 2022.
OLED TVs have been continuously evolving with higher definition and stronger user-friendly functions. LG Electronics Inc. is making an effort to market “OLED TV AI ThinkQ” which features its own artificial intelligence (AI) platform ThinkQ. An official from the company said, “The product is being well received by consumers for its higher definition, AI technology and price competitiveness.”
Price competitiveness is an important factor in popularizing OLED TVs. The price of LG OLED TVs dropped from some 15 million won (US$13,363) five years ago to 2 million won (US$1,782) this year.
As the global OLED TV market grows rapidly, competition among producers is intensifying. Currently, 15 global IT companies have jumped into the OLED TV market, including Japan’s Sony and Panasonic and China’s Skyworth and Hisense. LG Electronics is leading the market with a 70 percent market share.
LG Electronics has been aggressively lowering the prices of OLED TVs in order to popularize them.
The company announced on August 7 that it would hold a discount event for OLED TVs and sell 55-inch products (model number 55B8C, 55B8F) at 2.09 million won (US$1,862) per unit, 300,000 won lower than the current price, until the end of this month.
The 55-inch OLED TV, which began to be mass produced in 2013, used to cost 15 million won, but the price has fallen by 86% over five years. This is a similar price range to that of premium LCD TVs.
This discount event also includes large OLED TVs. The 77-inch LG Signature OLED TV W (77W8W) will be sold at 17 million won (US$15,145), down 6 million won from the regular price, and the 77-inch OLED TV (77C8K) will be sold at 15 million won (US$13,363), 2 million won lower.
In particular, customers who purchase LG Signature OLED TV W will get a full set of LG Pra.L, a home beauty device.
According to a company official, "The global market for OLED TVs will expand rapidly as the price competitiveness grows."
With this increase in sales, OLED TVs accounted for more than half of LG Electronics’ sales in Korea this year.