Posts Tagged ‘Sharp’
Consumer Television: It’s Business As Usual (Or Maybe Not)
- Published on Friday, 24 January 2014 19:49
- Pete Putman
- 0 Comments
The official numbers haven’t been released yet, but a report in The Korea Herald, dated January 22 says that the final data will show Samsung dominated the global television business in 2013.
According to the story, Samsung was estimated to have sold 49 million units of flat-panel TVs last year. DisplaySearch had the totals at 32 million from January through September (the final DisplaySearch numbers for 2013 haven’t been compiled yet) and Yoon Boo-keun, Samsung’s consumer electronics division chief, stated at CES earlier this month that the company sold around 15 million TVs in Q4.
That’s an impressive number by anyone’s standards and reflects the complete dominance Samsung has in the television business. Think back 20 years to when Samsung was an afterthought; perceived as a 3rd-tier “bargain” brand for electronics.
Now, they’re on top of the heap, and have been so for eight consecutive years. In the meantime, LG looks to maintain its grip on 2nd place, with a varying market share number in the low to mid-teens throughout 2013. Between the two companies, they control over 40% of the worldwide television business.
The Japanese, on the other hand, will no doubt be disappointed by the final numbers for ’13. In the third quarter; Sony, Panasonic, and Sharp were hovering around 8%, 6%, and 5% market share respectively – and those numbers are expected to drop when the final tally comes in.
As I noted in my last DD, Panasonic seems to be charting a course away from televisions, based on what they didn’t show at CES (a full line-up of 2014 models) and their emphasis on commercial sales of everything from cameras and storage devices to digital signs and batteries. And of course, Panasonic pulled the plug on plasma panel and TV manufacturing at the end of December.
The other remaining player in televisions – Toshiba – took a similar approach to their CES booth, choosing to show a wide variety of 4K (Ultra HD) display applications for home and office and skipping the TV line-up. Toshiba has already shut down two manufacturing plants and laid off over 3,000 employees because of continued losses in television and computer manufacturing.
That leaves Sony and Sharp. The former continues to stay the course in sales and marketing of consumer TVs, but I’d be surprised if they don’t turn in yet another year of red ink – the ninth in a row. Sharp, meanwhile, has chosen to emphasize their super-sized lineup of TVs, plus clever engineering tricks like the Quattron+ line and their ability to manufacture IGZO TFTs with decent yields.
The problem for both companies is their uninterrupted slide in television market share that has been going on for eight years. With a 5% share worldwide and 3% in the United States as of Q3 2013, Sharp can’t afford to stay in this game for much longer. Neither can Sony, if they are serious about returning a profit to shareholders.
It doesn’t help matters that television sales are expected to have declined worldwide by 2.2% from 2012 when the accountants are done. The double-digit boom in TV sales in China kept that number from being a lot worse.
Amid the flurry of post-CES news stories about curved, super-sized UHDTVs was another item that went almost unnoticed, except for the sharp eyes of analyst Paul Gagnon of NPD DisplaySearch. In his blog post of January 17, Gagnon revealed how three retailers in the United Kingdom are already discounting LG’s “first to market” 55-inch curved OLED TV (55EA980W) by £3,000 ($4,910).
This product, which launched on these shores in July of 2013 for nearly $15,000, saw its price drop in the U.S by nearly $6,000 one month later when Samsung rolled out their own curved 55-inch model for about $9,000. And now – just seven months later – the LG model is selling in the U.K. for £4,999 ($8,178), almost one-half of its original sticker price. (Perhaps they overestimated demand?)
And the cannibalizing of TV prices continues unabated. On the last day of CES, Vizio announced its prices for a line of full-array LED 4K (UHDTV) “smart” LCD models – and they aren’t much higher than conventional LED “smart” TVs from LG and Samsung.
Case in point: The 50-inch P502ui-B1 will retail for $1,000, while the 55-inch version will have a sticker price of $1,400. The P602ui-B3 is set at $1,800, and the 65-inch model will command $2,199. Finally, a 70-inch skew (P702ui-B3) will be offered at $2,600. Consider that Samsung and Sony are trying to peddle 55-inch 4K LCD smart TVs for about $2,900 right now and you can clearly see the train wreck coming.
Summing up: Samsung dominates the consumer television world – business as usual. Panasonic and Toshiba de-emphasize TVs at CES – maybe not. Sony and Sharp keep pouring money into consumer television manufacturing and marketing, even though they are incurring substantial losses – business as usual. LG and Vizio slashing prices on OLEDs and 4K TVs – definitely not!
EDITOR’S NOTE: The original version of this article mistakenly quoted the discount applied to the LG 55EA980W as the actual selling price. The article has been updated on January 29 to reflect the correct selling price and discount of this TV.
CES 2014: First Impressions (4K, Curved Screens, OLEDs, and All That)
- Published on Saturday, 11 January 2014 17:50
- Pete Putman
- 0 Comments
2013 was an interesting year for television technology. LG’s long-awaited 55-inch OLED television started shipping, albeit with a curved screen. Not long after, Samsung announced their 55-inch curved OLED TV, but at a $6,000 discount to LG. Later in the year, Sony announced a curved 4K LCD TV, and rumors started that we’d see more such products in Las Vegas.
Did we ever! Not only did LG and Samsung showcase curved LCDs and OLEDs, so did Toshiba, Sony, Konka, Changhong, Hisense, and TCL. And three companies (LG, Samsung, and Toshiba) unveiled 21:9 aspect ratio curved 4K LCD TVs (there’s a mouthful!), all in a 105-inch diagonal size. (No word on where the LCD panel or panels come from).
We also were treated to newer, bigger sizes. 84 inches used to impress; now we have 95 inches, 98 inches, 105 inches, 110 inches, and even 120 inches. Yep, Vizio (of all people) exhibited a 120-inch LCD TV in their suite at the Wynn, and it uses ASV glass from Sharp’s Gen 10 in Sakai, Japan.
Want high dynamic range? Dolby was there to promote it, and we also saw it in the Vizio and Sharp booths. How about big OLEDs? LG has a 77-inch curved cut with 4K resolution that is currently the world’s largest OLED TV. (Wait a few months; that’ll change.) Quantum dots? Sony’s had them for a year, but now several Chinese manufacturers are buying in, as I saw in the QD Vision suite.
Just like tablets a few years back, large and curved TVs went from “Wow!” to “So what?” in the matter of a few hours at the show. What really amazed me is that almost every breakthrough TV product unveiled by Samsung and LG was also found in the booths of the Chinese TV manufacturers – and they didn’t nearly make as much noise about it.
Some TV manufacturers made more of an impression by what they didn’t show. Panasonic’s emphasis this year was clearly on commercial applications of display technology. We know that Panasonic shut down plasma panel and TV production at the end of December. What we don’t know are Panasonic’s plans for consumer television in general, as they didn’t show a formal line-up of LCD TVs in Las Vegas – just applications for 4K displays.
The significance of this omission can’t be understated. Panasonic finally reversed years of losses in 2013, losses that were largely attributed to television operations. While Panasonic had decent worldwide TV market share in 2013 (about 6%), they may have finally seen the writing on the wall. That would explain their emphasis on battery and energy technologies, automotive tech, and white goods / appliances at the show.
Toshiba has struggled with substantial losses in both computers and television. As has been documented in Display Daily, the company is finally addressing profitability in a more hard-nosed fashion. And if they needed any convincing, the enormous booths of Chinese TV manufacturers that were stuffed full of 4K product probably did the trick.
That leaves Sony and Sharp. The former had a rather pedestrian booth at the show, focusing more on applications and smaller electronics (including gaming) than televisions. There weren’t any ground-breaking tech demos in Sony land this year, aside from curved 4K LCDs. Aside from one barely profitable quarter earlier last year, Sony continues to pile up losses in consumer TV sales and veteran financial analysts ramp up their call for the company to cut its losses and get out.
Sharp, on the other hand, may have more lives than a cat. The company has set record for financial losses the past few years and required cash infusions from Qualcomm and Samsung to keep their doors open in 2013. Yet, they managed to eke out a small profit in consumer televisions midway through the year.
While not out of the woods yet, Sharp is plowing forward with an emphasis on big TVs (60 inches and up). They unveiled four new lines – Aquos 2K, Quattron, Quattron+, and Aquos Ultra HD. We’ve heard the Quattron story before, but Quattron+ is something new and intriguing: Multiple addressing of horizontal and vertical sub pixels to achieve higher resolution than 2K, even though the Quattron RGBY matrix is still a 2K array.
Sharp is also making a big deal out of mastering IGZO manufacturing. (LG also uses IGZO in its 4K OLED TVs.) While IGZO yields are still challenging, the technology does offer many advantages over amorphous silicon and low-temperature polysilicon – not the least of which is reduced power consumption.
So I left Las Vegas after 3.5 days with the following insights. (1) If we haven’t seen the sunset of the Japanese television industry, we’re very close to S-Day. (2) There really isn’t anything new under the sun, television-wise, that the Chinese brands don’t also have. (3) Large LCDs will migrate exclusively to 4K panel resolution within 2-3 years.
Finally, (4): Televisions just don’t generate much buzz anymore, particularly when you look at all of the tablets, smartphones, and personal electronic displays that were showcased at CES.
EDITOR’S NOTE: Look for more coverage of CES shortly.
The Diverging Fortunes of Sony, Panasonic, and Sharp: Is There Life After Television?
- Published on Friday, 01 November 2013 15:24
- Pete Putman
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Last week; Sony, Panasonic, and Sharp announced their financial reports for Q2 2013. And it’s clear that all three would benefit from phasing out the production and sales of televisions.
Panasonic, who is on track to shut down production of plasma display panels by the end of the current fiscal year in March of 2014, turned in a strong performance and raised its operating profit forecast to $2.75B, according to a story on the Reuters Web site.
The company posted a net profit of $627M for the period from July through September, helped by strong sales of automotive and battery products. This number just exceeded an estimate of $621M by industry analysts.
The surge of black ink was helped by downsizing plasma TV operations, along with semiconductor and smartphone manufacturing. Panasonic also concluded a sale of 80% of its healthcare business unit to KKR for about $1.7B.
Not long after saying the company would increase shipments of lithium ion batteries to carmaker Tesla Motors by nearly 2 billion cells through 2017, Panasonic also announced it will exit plasma TV manufacturing, which along with its LCD TV operations lost $261M in the second quarter.
Down the road, Sharp (who operates the world’s largest LCD fab in Sakai, Japan) managed to pull a rabbit out of its hat and announced a profit of $138M for the same quarter, largely due to increased demand for solar cells and a weaker yen against the dollar. Just one year ago, Sharp had a $5.5B net operating loss and required transfusions of cash from Samsung (2012) and Qualcomm (2013) to stay open.
While both companies have seen a steady decline in their worldwide TV market share (Panasonic dropped 26% from a 7.8% share in 2011 to 6% in 2012, while Sharp plummeted 22% from 6.6% to 5.4%), they’ve obviously figured out that it’s time to re-focus their efforts on more profitable products and are making progress in that direction.
Not so Sony, who evidently never heard Einstein’s famous definition of insanity as “…repeating an experiment and expecting different results.” Sony’s latest financials showed a net operating loss of $197M for the 2nd quarter, largely attributable to its TV operations. The fact that Sony Pictures also had a disappointing quarter didn’t help.
The TV group lost $95M between July and September after recording a $53M profit during the previous quarter. Sales of cameras, camcorders, and Vaio computers were also weak, with only smartphones showing any strength. The company also has high hopes for its PlayStation 4 platform, which will debut later this month.
Still, analysts aren’t convinced that Sony’s strategy to maintain its traditional consumer electronics products presence will work anymore. In a related Reuters story, Makoto Kikuchi, CEO of Tokyo-based Myojo Asset Management, was quoted as saying, “I still cannot see any fundamental and believable strategy for the rebirth of Sony’s electronics business. On the other hand Panasonic, which is shifting its business away from consumer electronics, is reporting better-than-expected results. The contrast is like night and day.”
Let’s be clear: Neither Panasonic or Sharp is out of the woods yet – far from it. Panasonic’s TV operations took an even bigger hit than Sony (-$261M) in Q2 ‘13, and Sharp is still sitting on the edge of bankruptcy. But Sony’s insistence on maintaining a losing CE presence may cost it dearly: Moody’s is apparently considering dropping Sony’s credit rating to junk status.
The fact is; Japanese manufacturers can’t sell TVs and remain profitable anymore; not as long as Samsung and LG maintain aggressive pricing and newcomers like Hisense, Haier, and TCL crash the party (not to mention discount giant Vizio).
And the move to 4K won’t help. Although Sony, Sharp, and Panasonic all have 4K LCD TVs at retail for about $80/inch, the Chinese appear primed for a 4K TV price war that they will inevitably win. Consider that without China, the worldwide market for TV shipments actually declined in 2012 by 4%. Add China to the mix, and it’s an eight-point upward swing.
To sum up; Panasonic seems to have gotten religion, while Sharp is still sobering up. But Sony apparently needs an intervention. Will disgruntled shareholders and/or downgraded credit and a higher cost of borrowing force the issue? Stay tuned…
For Samsung, It’s Now Their Game With Their Rules
- Published on Tuesday, 12 March 2013 10:52
- Pete Putman
- 0 Comments
In less than twenty years, Samsung has risen from a “who’s that?” manufacturer of cheap electronics to the pre-eminent CE brand, dominating the worldwide market for smart phones and televisions, and leading the charge for adoption of organic light-emitting diodes through its subsidiary, Samsung Mobile Display.
The rise in Samsung’s fortunes has paralleled the decline of the Japanese CE industry. Samsung ships roughly 25% of all TVs worldwide and manufactures better than 90% of the OLEDs used in handheld displays. In contrast, the three largest Japanese TV brands combined (Sony, Panasonic, and Sharp) captured less than 20% of the worldwide TV business in 2012 and lost billions of dollars while doing so.
It was one of only two companies to be profitable in televisions for 2012 (LG was the other) and invented a new product category – the “phablet,” or phone with a large (>5”) screen – that has surprised veteran analysts with rapid consumer acceptance.
To give you an idea of Samsung’s clout, it spends a great deal of time in patent courts, suing and being sued by Apple, the second-most-powerful CE brand in the world. (In a Bizzaro twist, Samsung has also partnered with Apple to bid on Kodak patents related to digital imaging.)
And now Samsung is making history: The company announced last week that it will invest $111 million in struggling Sharp Corporation, taking a 3% ownership stake in the manufacturer that has been on the verge of bankruptcy for several months now.
Having a Korean company acquire such a strong position in a legendary Japanese brand is unprecedented, but this action may have staved off a possible majority acquisition by Taiwan-based Hon Hai Precision (Chi Mei, Foxconn Group). And that would have been unthinkable in the Land of the Rising Sun.
Why is Samsung taking this step? The answer was foreshadowed over a year ago, when the company reorganized its unprofitable LCD panel manufacturing business as part of SMD. This move showed the company was shifting its R&D resources away from LCDs to OLEDs, a technology that is scalable to displays large and small, and offers numerous image quality and power consumption advantages over LCDs. (That is, if and when OLED yields on larger screens can be increased to workable levels. )
When you control 25% of the global TV market and make money doing it, why throw money away manufacturing LCD panels, which are now unprofitable commodities? Especially when the world’s largest LCD panel fab lies just across the Sea of Japan (or Korea, depending on your version of history) and you can buy inexpensive access to the next-generation of LCD (and OLED) backplane technology, IGZO?
According to a story on the Bloomberg Web site, Sharp is looking at 200 billion yen of convertible bonds that will come due later this year. But cash is hard to come by these days in Osaka, and Apple cut back much-needed orders for smaller LCD glass when iPhone demand began to tail off. A $140M investment by Qualcomm last December helped, but only to keep the vultures at bay for a few months.
In the meantime, Sharp is anticipating a record 450 billion yen ($4.7B) loss for the current fiscal year, which ends this month. Their stock price has dropped 55 percent in the past year, partly because the talks with Foxconn Group have dragged on so long. Sharp has mortgaged its corporate headquarters in Osaka and continues to look for more investors as red ink cascades from their balance sheet.
Amir Anvarzadeh, a manager for Asia equity sales at BGC Partners Inc. (BGCP) was quoted in the Bloomberg story as saying, “Chances for Sharp to revive as a standalone company are zero unless becoming part of a big group like Samsung or Foxconn.”
Speaking of Hon Hai, they’re apparently still in the game. Even though Foxconn Groups’s Terry Gou announced he would buy a nearly 10% stake in Sharp one year ago, the deal still hasn’t been consummated. (The two companies are still in talks, meeting one day after the Samsung announcement.)
This is indeed a new game with new rules. And no one is quite sure how it will play out. One thing we do know is that Samsung, with market-leading positions and $34B in cash, has the strongest hand in the world of consumer electronics right now.
And when you run the game, you get to make the rules…
In The Wake of CES 2013: Thoughts and Afterthoughts
- Published on Thursday, 14 February 2013 18:39
- Pete Putman
- 0 Comments
It’s just over a month since the International CES, otherwise known as the world’s largest orgy of consumer electronics. Some folks are even jokingly calling it the “Chinese Electronics Show,” after the strong showing by mainland Chinese manufacturers.
I can tell you that, after sorting through over 1,200 photos and videos, I’m still discovering things I photographed in the Las Vegas Convention Center. And there have been plenty of product announcements since the show, not to mention some shifts in power among CE manufacturers.
Each year, I present on future trends in technology at InfoComm. I also travel around and offer a condensed version of this talk for dealer and distributor line shows, professional society meetings, and even for a local amateur radio club.
As you might imagine, the content of the talk is updated frequently. What I present in two weeks at the local chapter meeting of SCTE will look and sound quite a bit different by the time I get to Orlando in mid-June. But that’s the nature of the beast – there is nothing so constant in the world of electronics as change.
Even so, there are a few clear trends that aren’t likely to change in the near future. And the most important trend, one which underlies everything else, is this: Hardware is cheap, and anyone can make it.
Think about it – you can buy a 60-inch plasma TV for less than $1,000, and that’s an everyday price. Want a nice Android tablet? You can pick them up for under $300. Blu-ray players with WiFi connectivity are now available for $70. And Roku’s XD Internet video set-top box (HD playback) is also ticketed at the same price.
Heck, you can buy an 80-inch LCD TV for less than $4,000. And that size and price combination has put a good portion of the front projector market in jeopardy. I won’t rehash previous columns here; suffice it to say that consultants, dealers, and systems integrators are putting these big screens in everywhere, and tearing out a lot of perfectly-good projector/screen combinations along the way.
But the low prices on the 80-inch Sharp TV are due to (a) excess fab capacity at Sharp’s Gen 10 Sakai LCD plant in Japan, and (b) the fact that Sharp is teetering on the verge of bankruptcy. Hence; the company is pushing the daylights out of large LCD TV and monitor sales at unbelievably low prices (less than $50 per diagonal inch).
Sharp also has a 90-inch product in their line, and anecdotal evidence shows that dealers are buying them for about $8,000 a pop. The 80-inch and 90-inch products are quite popular in two-up, side-by-side installations for videoconferencing and graphics display. And now China is getting into the game, showing 110-inch glass cuts made in Shenzen and resold by (among other brands) Samsung and Westinghouse. No one could have forseen nor desired this rapid drop in prices for LCD displays, particularly when the worldwide market for TVs is in decline.
Hardware is cheap, and anyone can make it.
The other day, I was shopping in Best Buy and came across a special on USB flash drives (also known as “thumb” drives). SanDisk, celebrating its 25th year in business, was offering 8 gigabyte (GB) flash drives for $6 a pop – no coupons or rebates necessary. 16 GB models had a price tag of $10, and 32 GB drives could be scooped up for $20 apiece.
Believe it or now, flash drive capacity has blown past actual demand. With more and more people storing photos and documents “in the cloud,” there’s less of a need for portable flash memory.
Even so, it will take a long time to fill up a 32 GB flash drive. My 1,200+ photos and videos from CES needed about 3 GB of space on the 32 GB SD card installed in my Nikon CoolPix 8200 camera.
I bought a Barnes & Noble Nook HD+ tablet in December, and fitted it with a 32 GB Micro SD card. That is a LONG way from filling up – the only files that take up any sizable room are HD movies I download for rentals (about 6 – 7 GB per movie).
You can buy 64 GB and even 128 GB flash drives now at reasonable prices. For those crazy enough to want one, you can pick up a 500 GB thumb drive for about $300 now. Of course, you can also purchase a 1 TB Western Digital MyBook for backups at a cost of just $129.95, or a Toshiba 2 TB portable HDD for less than $200.
Hardware is cheap, and anyone can make it.
The trend towards multifunction CE devices has also put a few product categories on the endangered species list. Shipments of point-and-shoot and DSLR camera declined markedly in 2011 when compared to 2010, a trend that is expected to repeat when 2012’s numbers are tallied.
The culprit? Mobile phones and tablets. Sure, they don’t have optical zoom lenses. And their image resolution still isn’t on a par with the best DSLRs and point-and-shoots. But that makes no difference to the average consumer, who is often pleasantly surprised to see just how well his or her smart phone takes HD-resolution pictures.
Last year, Canon and Nikon even introduced several models of DSLRs and pocket cameras with built-in WiFi and the Android operating system, just so people could take photos and instantly share them with friends. As far as I can tell, these products aren’t doing much to stem the decline in camera sales. After all, you can’t make phone calls or send texts with these cameras.
Nonetheless, prices for cameras have dropped to all-time lows. A nice compact point-and-shoot can be yours for less than $100, while a 16 megapixel model with 14x optical zoom and the ability to shoot 1080p/30 videos will run about $200. (As a point of reference, Canon’s first 5D-series DSLRs could shoot 3 frames per second in 2005 and cost $3,300.)
Hardware is cheap, and anyone can make it.
Even though consumers haven’t swarmed to “smart” TV functions, they do like their streaming – and Netflix is now the largest pay TV system operator in the United States, with over 25 million subscribers (yes, more than Comcast). With an ever-increasing number of viewers watching video on tablets, notebooks, and through Internet connectivity boxes like Apple TV, Boxee, and Roku, we’re seeing the leading edge of a shift in how TV shows and movies are accessed.
The phenomenon of “cord-cutting” is not new – mainstream publications have been following it for some time. But there’s evidence that the trend is accelerating, driven by ever-higher costs for pay TV subscriptions that are running above the annual rate of inflation.
And it’s Generation Y that is taking the lead here, preferring to watch episodes of popular TV shows after they become available for download or streaming at Amazon, Hulu, Vudu, Netflix, and on network Web sites. That is carrying time-shifting to an extreme, but it’s all in the name of economy.
Now, the traditional pay TV systems will tell you that cord-cutting is an aberration; a short-lived phenomenon that will run its course once younger people get married, form households, have children, and change to more traditional cable or satellite service.
Except that doesn’t appear to be happening. Just as Generation X and Y have all but pushed traditional landline telephone service into oblivion in favor of 24/7 mobile phone use, so too will they force the Comcasts, Time Warners, and DirecTVs of the world to finally offer some type of a la carte programming at lower prices.
And Gen X and Y will succeed because they’re already watching a la carte, streaming or downloading selected shows and movies at $2 – $5 a pop when it suits them. Many are supplementing Internet TV viewing with free, over-the-air broadcast HDTV services to hold the line on their entertainment budgets.
Many people buy WiFi-enabled Blu-ray players solely for the purpose of streaming. Yes, they can pop in a BD or DVD now and then, but the majority of their viewing is through that streaming port. And that is one reason why Blu-ray player prices have dropped so far and so fast.
Hardware is cheap, and anyone can make it.
When you stop and think about it, the cost of consumer electronic devices compared to the power and functionality they offer is simply mind-boggling. With a $40 Bluetooth keyboard and $60 micro mouse, my Nook HD+ is transformed into a super-compact notebook computer. I can surf the Web, watch movies and TV shows, send and receive emails, and even make a PowerPoint presentation. And all of that cost me less than $400.
Televisions with screens smaller than 50 inches can often be purchased for less than $10 per diagonal inch. For that matter, I’ve seen 26-inch and 32-inch LCD TVs for about $8 per diagonal inch, a price point at which virtually no one is making any money. This means your next TV purchase is basically amortized in less than a year, and if it breaks, you simply recycle it and buy a new one.
The glut of LCD TVs in all sizes and the resulting TV price wars are claiming one casualty – plasma. Plasma TVs were once the Rolls-Royce of TVs and commanded comparable pricing. They still have the advantage in image quality all over LCDs, particularly at wide viewing angles. Maybe they aren’t quite as bright, but they do have excellent dynamic range and deep blacks.
So what? In the third quarter of 2012, 88% of all TV shipments worldwide were LCDs. 5.5% were plasma. In fact, more CRT TVs were shipped worldwide in Q3 2012 than plasma TVs! (You could look it up, as Casey Stengel used to say.)
Clearly, price and convenience are trumping quality, adding plasma to the endangered species list. Samsung, Panasonic, and LG will continue to manufacture plasma TVs as long as there is reasonable demand, but have been shuttering factories and fabs along the way as demand drops.
More importantly, they’re not investing any more capital in upgrading or enhancing plasma technology – not while TV prices are hovering in the range of $8 – $12 per diagonal inches, LCDs account for nearly 9 out of every 10 TVs sold currently, and the Chinese are breathing down the necks of Korean and Japanese TV brands with even lower-priced models.
Hardware is cheap, and anyone can make it.
I’ll close this essay with a look to the future of TV – specifically, 4K TV. You can shrug your shoulders, smirk, or make fun of 4K. But there’s no denying that it’s coming whether or not there is enough 4K content to watch.
4K went from being highly-anticipated at CES to “ho hum” in a single day. That’s because so many companies had 4K TVs on display, and many of those were located in China. Brands like Hisense, TCL, Skyworth, and Haier showed fully-loaded 4K TV products that were every bit as impressive as the latest “smart” TV offerings from Samsung, LG, Sony, Panasonic, and Sharp.
Not only that, the Chinese brands had multiple models of 4K TVs. While Sony and LG got some “oohs!” and “aahs!” for their 84-inch LCD offerings, Hisense had 50-inch, 55-inch, 65-inch, 84-inch, and 100-inch models flickering away in the aisles. Westinghouse Digital showed a similar portfolio in their LVH suite. Skyworth’s small booth was dominated by an 84-inch 4K set, while TCL pulled off a sensational marketing and PR coup; getting the producers of the upcoming Iron Man 3 release (May) to showcase their 110-inch 4K set in the movie. (Guess Samsung and Sharp were asleep when that happened?)
The fact is, most TV manufacturing is inexorably moving to China. Some will remain in Korea, but it’s hard to see how the Japanese can hang on, seeing as they are getting clobbered by an unfavorable exchange rate on the yen and the emergence of large LCD fabs in Taiwan and China that can make big sheets of inexpensive, good-quality LCD glass – glass that can be used in everything from tablets and phones to televisions. It’s just not a fair fight.
Hardware is cheap, and anyone can make it…