In recent weeks, the outlook for OLED TVs has brightened considerably, signaling a significant shift in the display technology landscape. Reports indicate that LG Display (LGD), a major player in the upstream panel manufacturing sector, is planning to establish a joint venture factory in Guangzhou to produce large-sized OLED panels. These panels will primarily cater to televisions and digital signage, with LG holding a 70% stake in the venture. It is anticipated that the facility will reach a monthly production capacity of 60,000 units, with mass production slated to begin in 2019.
The establishment of this new plant underscores the growing importance of OLED technology in addressing the limitations of traditional display screens. The announcement has already bolstered confidence among manufacturers and consumers alike, who see this as a step toward more advanced and efficient television displays. Additionally, there are rumors circulating that Apple, a trendsetter in consumer electronics, is considering entering the TV market and may opt for OLED screens for its future products. This speculation has further fueled interest in OLED TVs, making them a highly sought-after product in the market.
Despite these developments, the OLED TV market in Japan is still in its infancy. This year marks the first time OLED TVs have entered the Japanese market, though initial shipments during the first quarter were relatively modest. Nevertheless, sales volumes surged ninefold compared to the same period last year. Major players like Sony, Panasonic, and Toshiba have launched new OLED TV models, signaling a potential boom in the Japanese market.
However, not all Japanese electronics giants are embracing OLED technology with open arms. Sharp, a prominent name in the industry, remains skeptical about the long-term viability of OLED TVs. In public statements, Sharp's president, Dai Zhengwu, emphasized that the company's focus remains firmly on LCD TVs, which he believes offer superior brightness, energy efficiency, cost-effectiveness, and reliability over the long term.
Dai Zhengwu pointed out that 4K LCD TVs currently outperform OLEDs in many respects, particularly when it comes to durability and longevity. He questioned whether OLED TVs could match the 10-year lifespan of Sharp's LCD models, highlighting concerns about the stability and reliability of OLED technology. Moreover, Sharp has successfully matched the slim-profile design of OLED TVs with its LCD offerings, while keeping prices more competitive, which has bolstered the company's confidence in its LCD strategy.
Industry insiders attribute Sharp's unwavering commitment to LCD TVs to its strong position in the global LCD panel supply chain. Both Sharp and its parent company, Hon Hai Group, are leading suppliers of LCD panels worldwide. From this perspective, the continued success of LCD TVs seems assured, and both companies stand to benefit significantly from the existing market demand.
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