Recently, LG Display said that this year the company will provide large-size OLED panels to two brands, which is a new partner. This means that the OLED TV camp has further expanded. The data shows that OLED TVs are becoming the "sweet and pastry" of the high-end market, and a situation in which demand exceeds supply is forming.
A few days ago, many color TV companies announced detailed annual reports for 2017. From the annual report, the overall condition of the LCD color TV business was poor last year, and brand owners encountered numerous difficulties in this sector.
Last year, the operating income of Hisense Electric’s multimedia segment was approximately 30.6 billion yuan, and operating costs were approximately 26.2 billion. Operating income increased by 6.95% over the previous year, operating costs increased by 11.68% over the previous year, and gross profit margin decreased by 3% over the previous year. 62 percentage points; and its TV product operating income increased by 6.83% over the previous year, operating costs increased by 11.89% over the previous year, and gross profit margin decreased by 3.88 percentage points over the previous year. Konka Group’s electronics sector revenue is approximately 16.1 billion, operating costs are approximately 13.1 billion, operating revenues have decreased by 5.93% year-on-year, and gross profit margins have increased by 3.8%; Konka’s color TV business has operating revenues of approximately 12 billion and operating costs approximately 101 Billion, operating income decreased by 3.87% year-on-year, and gross profit margin increased slightly by 2.1%. Changhong achieved operating income of 77.632 billion yuan, a year-on-year increase of 15.57%; net profit attributable to the parent company was 356 million yuan, a year-on-year decrease of 35.76%. In 2017, Skyworth achieved operating income of 7254.8056 million yuan, a year-on-year increase of 22.40%, and realized a net profit of 95.244 million yuan, a year-on-year decrease of 81.93%.
Data show that in 2017, China's color TV retail sales volume was 47.52 million units, a year-on-year decrease of 6.6%, the largest drop since 2003. At the same time, the analysis of the reasons for the price increase of memory chips and panels appeared in the annual reports of many companies. , On the one hand, the manufacturing cost of the whole machine has risen, and on the other hand, the sales volume has fallen. The final result is that the profits of well-known brands have fallen to the lowest level in recent years.
The high-end market "scenario" is completely differentCompared with the "struggle" of many well-known domestic color TV companies in the multimedia business, Sony's color TV business last year was booming.
At a recent Sony annual brand event, Sony’s performance in the high-end TV market last year was repeatedly mentioned by the company’s executives. Sony stated that in 2017, although the overall scale of the Chinese TV market has shrunk, Sony seized the market opportunity of increased demand for 4K and large-size segments, and led the upgrade of the consumption structure by increasing the supply of high-value-added products. In the high-end, large-screen segment, the market share has been successfully increased steadily.
In fact, last year, Sony combined its own advantages in color TV chips to launch its flagship OLED TV product, with impressive sales. According to data from the well-known market research organization HIS, Sony’s overall TV revenue in 2017 increased by 21% compared to 2016, of which OLED TV contributed 8%.
The results of struggling to deploy on high-end color TV sets have also become one of the few bright spots of some domestic color TV companies last year. Skyworth's annual report pointed out that high-margin, large-size products can greatly reduce the impact of industry average selling price fluctuations on corporate profits, and the sales of OLED TVs are the primary contributor to the substantial increase in sales of Skyworth's high-end product line.
OLED has become the absolute main force in the high-end marketLast year, laser TVs and ULED ultra-quality TVs were Hisense’s main layout in the high-end TV market. These two products have indeed brought bright colors to Hisense’s color TV business. This year, the company’s layout in the high-end market may have some Change, it is expected that in the second half of this year, Hisense will join the OLED TV camp. However, Hisense has not officially confirmed this news.
"The TV industry is currently in a state of saturation, but OLED TVs have brought new value to the market and will become a breakthrough in the display industry." Skyworth Group CEO Liu Tangzhi once said publicly.
At present, under the situation that the overall demand has reached "saturation", if TV manufacturers do not want to fall into the trap of price wars, they can only seek new value, develop high-end markets, and make new breakthroughs.
When it comes to the high-end market, the performance of OLED has to be mentioned. According to IHS data, last year, in the high-end TV market above $2,500, OLED TVs accounted for 51.3% of the world, accounting for half of the country, and surpassing LCD TVs for the first time. This figure was only 15.5% in 2015 and 35% in 2016.
IHS predicts that in the high-end market, OLED TVs will continue to maintain a rapid growth trend. In 2018, OLED TVs will account for 70.7% of the US$2,500 high-end TV market, becoming the absolute mainstream.
It is worth noting that LG Electronics' overall TV revenue in 2017 increased by 9% compared to 2016, of which the contribution rate of OLED TV was as high as 52%. LG Display, a subsidiary of LG, is currently the only company in the world that mass-produces large-size OLED panels.
Li Shangxun, vice president of marketing and marketing of LG Display's TV division, said in an interview with a reporter from Nanfang Daily that companies that had been hesitant before are now also beginning to invest in the OLED market. Since the end of 2017, the OLED camp has expanded to Philips, including 13 Japanese manufacturers such as Sony and Panasonic, Korean manufacturers such as LG Electronics, and major Chinese manufacturers such as Skyworth, Changhong and Konka.
"It is now certain that two new companies will enter the OLED color TV camp this year." Li Shangxun revealed. Due to commercial regulations, Li Shangxun did not disclose the specific company name.
As for these two companies, the industry currently generally considers Hisense and Toshiba. No matter who it is, this means that the OLED TV camp has further expanded.
my country will become the main battlefield of OLED TV sales"In March this year, there was a 30% shortage of supply and demand for OLED TV panels." South Korean KB Securities analysts said that increased demand may lead to an increase in OLED panel prices. IHS data analysis shows that the OLED TV panel market will grow substantially. The demand in 2018 will increase from 1.7 million in 2017 to 2.9 million, and it is expected to reach 9 million in 2021.
At present, from the upstream of the industry, the prices of materials and equipment required for the production of OLED panels have not been loosened, and LG Display said that the company's 2018 OLED panel production capacity will be about 2.8 million.
Li Shangxun also told a reporter from Nanfang Daily, "By the end of last year, the production of OLED panels had achieved large-scale operations and turned losses into profits."
All the above signs indicate that in the next two years, the price of OLED panels will still not loosen significantly, but it will not rise sharply, and will remain relatively stable.
Although the price is high, with the addition of more brands, the OLED TV sales competition will become more intense. Currently, in North America and Europe, OLED TV sales have become more mature and normal. The industry expects that in the future, China will become the main battlefield for OLED TV sales.
In the fast-growing OLED demand, the Chinese market has played an important role in promoting. According to HIS data, starting from the second quarter of this year, the number of OLED TVs in China will enter a period of rapid growth. Among them, the second quarter of this year is expected to increase by 118.8% year-on-year, and the third quarter of 2018 is expected to increase by 120.4% year-on-year.
According to the agency’s expectation, next year, China’s OLED TV will continue to maintain rapid growth, an increase of 115.5% over 2018. By then, China will become the only region in the world with a growth rate of over 100% for OLED TV. Japan’s growth rate is expected to be the second. It is 64.7%.
This is actually the result of consumption upgrades. Nowadays, users have higher and higher requirements for audio-visual effects. Not only are the requirements for TV screen size and display effect increasing, but also the requirements for TV appearance. Metal frame, "frameless" and other designs are widely sought after. This is also one of the reasons why high-end OLED TVs with perfect picture performance and freer design space are highly sought after because they do not need a backlight module.
In order to seize the Chinese market, at the end of last year, LG Display confirmed that it would build another world-leading 8.5-generation OLED TV panel production line in Guangzhou with a monthly production capacity of 60,000 pieces (based on glass substrates). Mass production is expected in the second half of next year. This is the first overseas OLED panel production line after South Korea. After LG Display Guangzhou's 8.5-generation OLED factory is completed, China will become the world's second OLED TV panel production base.
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