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Europe -- Strongest Market for OLED TVs
Omdia reported that of the 2.05 million OLED TV sets sold by LGE last year, 970,000, or 47% were sold in Europe, according to an audit report the electronics maker released last week. The proportion has steadily grown since 2017, when Europe only accounted for 38.78 percent. Total OLED TVs sales from all set makers was a reported 4.3m. Europe beat out North America in terms of overall sales at LG’s home appliance division for the first time since 2018 when it started tracking the data by region. Analysts say the upbeat result is connected to the stellar performance of OLED models in different European consumer reports, such as OCU Compra Maestra, a Spanish media company, which gave the LG OLED with Gallery design the top rate among 60 different models. In awarding the highest mark, the company assessed that the TV has a great resolution, audio and field of view.
The OLED TV won a positive response at other consumer organizations and publications including Britain's Which France's Que Choisir, Germany's Stiftung Warentest and Italy’s AltroConsumo. Asked why OLED TVs have gained traction in Europe, LG cited the polarization in the purchase of TV where consumers go for either budget or premium models.
TVs priced below $500 accounted for 66 percent of sales globally back in 2018, but the share increased to 73 percent last year. North America used to be considered the target market for high-end TVs, but the average selling price of TVs sharply declined to $410.50 last year, slightly higher than in China. The figure for western Europe stood at $631.40, 53.8% higher than North America, according to Omdia.
LG has pursued a wide variety of commercial campaigns in Europe. It displayed a massive sign — 9 meter in width and 4.5 meter in height — promoting OLED TVs near the Europa Business Center in Vilnius, Lithuania with the phrase “Best TV for watching sports.” With the skewed consumer preference for either low or high-end products, market insiders predict that OLED TVs could benefit. Omdia projected sales of OLED TVs to jump by 60 percent to 5.6 million units this year.
Omdia reported on March 7 that the prices of 32- to 65-inch LCD panels rose about 4.5% last month. Specifically, the price of 55-inch 4K LCD panels rose from US$182 to US$191, up more than 70 percent from a year ago. Likewise, the price of 65-inch LCD panels jumped from US$170 to US$242 as LCD panel prices returned to the level of three years ago, when the oversupply triggered by Chinese manufacturers had yet to begin. In 2017, the manufacturers including BOE and CSOT began to supply their products at prices lower than those of South Korean products with the government backing their mass production. In August 2018, the price of 55-inch 4K LCD panels was US$192. However, it dropped to US$100 in December 2019. Chinese companies are no longer providing such aggressive discounts in the market they now dominate. This led to a rise in LCD panel price and the rise has been accelerated by COVID-19 and the resultant increase in TV demand.
As we reported last week, prices of OLED panels are falling based on an increase in production with the difference between the prices of 55-inch 4K LCD and OLED TV panels likely to fall from 4.6 times to 2.9 times from 2019 to this year and to 2.6 times in 2023. Omdia commented that OLED panels are expected to replace LCD panels more and more rapidly based on this increase in price competitiveness, but capacity for OLED panels is limited and there is insufficient growth panned between 2021 and 2023 to stop the LCD growth in the high end TV market.
Omdia reported that of the 2.05 million OLED TV sets sold by LGE last year, 970,000, or 47% were sold in Europe, according to an audit report the electronics maker released last week. The proportion has steadily grown since 2017, when Europe only accounted for 38.78 percent. Total OLED TVs sales from all set makers was a reported 4.3m. Europe beat out North America in terms of overall sales at LG’s home appliance division for the first time since 2018 when it started tracking the data by region. Analysts say the upbeat result is connected to the stellar performance of OLED models in different European consumer reports, such as OCU Compra Maestra, a Spanish media company, which gave the LG OLED with Gallery design the top rate among 60 different models. In awarding the highest mark, the company assessed that the TV has a great resolution, audio and field of view.
The OLED TV won a positive response at other consumer organizations and publications including Britain's Which France's Que Choisir, Germany's Stiftung Warentest and Italy’s AltroConsumo. Asked why OLED TVs have gained traction in Europe, LG cited the polarization in the purchase of TV where consumers go for either budget or premium models.
TVs priced below $500 accounted for 66 percent of sales globally back in 2018, but the share increased to 73 percent last year. North America used to be considered the target market for high-end TVs, but the average selling price of TVs sharply declined to $410.50 last year, slightly higher than in China. The figure for western Europe stood at $631.40, 53.8% higher than North America, according to Omdia.
LG has pursued a wide variety of commercial campaigns in Europe. It displayed a massive sign — 9 meter in width and 4.5 meter in height — promoting OLED TVs near the Europa Business Center in Vilnius, Lithuania with the phrase “Best TV for watching sports.” With the skewed consumer preference for either low or high-end products, market insiders predict that OLED TVs could benefit. Omdia projected sales of OLED TVs to jump by 60 percent to 5.6 million units this year.
Omdia reported on March 7 that the prices of 32- to 65-inch LCD panels rose about 4.5% last month. Specifically, the price of 55-inch 4K LCD panels rose from US$182 to US$191, up more than 70 percent from a year ago. Likewise, the price of 65-inch LCD panels jumped from US$170 to US$242 as LCD panel prices returned to the level of three years ago, when the oversupply triggered by Chinese manufacturers had yet to begin. In 2017, the manufacturers including BOE and CSOT began to supply their products at prices lower than those of South Korean products with the government backing their mass production. In August 2018, the price of 55-inch 4K LCD panels was US$192. However, it dropped to US$100 in December 2019. Chinese companies are no longer providing such aggressive discounts in the market they now dominate. This led to a rise in LCD panel price and the rise has been accelerated by COVID-19 and the resultant increase in TV demand.
As we reported last week, prices of OLED panels are falling based on an increase in production with the difference between the prices of 55-inch 4K LCD and OLED TV panels likely to fall from 4.6 times to 2.9 times from 2019 to this year and to 2.6 times in 2023. Omdia commented that OLED panels are expected to replace LCD panels more and more rapidly based on this increase in price competitiveness, but capacity for OLED panels is limited and there is insufficient growth panned between 2021 and 2023 to stop the LCD growth in the high end TV market.
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