LG Electronics is releasing a rollable 8K TV in the second half of the year. For 8K TV, there is a two-track strategy for liquid crystal displays (LCDs) and organic light emitting diodes (OLEDs). The price of new OLED TV products is 30% lower than last year.
Kwon Bong-Seok, head (President) of the MC/HE division at LG Electronics, announced the company’s major business strategy at the '2019 LG TV New Product Presentation' held at the Magok LG Science Park in Seoul on June 6th. LG Electronics also aims to raise the proportion of OLED TVs in the total sales to 25% this year from 20% last year.
President Kwon emphasized, “Around OLED TV, we will strengthen our position in the premium market. We expect the market for premium LCD TVs based on nano-cell technology to be aggressively marketed, unlike the last year, contributing to the faster growth of the market share and growth rate.”
According to market researcher IHS Markit, LG Electronics TV sales last year reached $19 billion (about 21.4 trillion won), up 52 percent from $12.5 billion in 2017. However, the market share fell from 12.6% to 12.2%. Although the profitability has increased thanks to OLED TV sales, LCD TV sales have declined relatively. This year the company plans to achieve goals in both quantity and quality. Its OLED TV sales should reach $4.743 billion this year, an increase of $900 million from $3.96 billion last year.
To expand sales, LG Electronics lowered the price of its nine OLED TV models by 30% from last year. Once the 8.5G OLED panel factory in Guangzhou, China, starts operation in the third quarter this year, OLED TV production is expected to accelerate. The global OLED TV market is expected to be 3.6 million units this year, 7 million units in 2020, and 10 million units in 2021.
The new image quality processor 'AI 2nd Generation Alpha AI 9' has greatly enhanced its learning capabilities. The picture quality can be improved more quickly in a state in which the big data is learned in advance. All models are equipped with 'AI Home Board' function that allows you to see and control smart home appliances on the TV screen.
In regard to 8K TVs, which Samsung Electronics both launched first and and is leading the market in, LG Electronics said that it was less prepared in terms of content and that it should consider the value delivered to consumers. President Kwon said, "In the second half of the year, we plan to launch a product that meets various 8K playback standards. We will be entering the market centered on 88-inch OLED TVs and 75-inch LCD TVs."
Meanwhile, LG Electronics will release nine OLED TV models (77W9W, 65W9W, 65E9, 55E9, 77C9, 65C9, 55C9, 65B9 and 55B9) sequentially this month. The price for 55 inches increased from 2.7 million won to 3.1 million won, 65 inches from 5.2 million won to 8.90 million won, and 77 inches from 12 million won to 18 million won.