Slim Tops Key Trend for TV Makers
Competition for Slimmer TVs High. LED Backlights Grab Key
By Kim Yoo-chul
Staff Reporter
SUWON, Gyeonggi Province ― A new screen technology promising sharper and slimmer designs is looking to become the standard display for global television set makers, fueling fresh and strong life into the TV industry.
A crop of sleek and slimmer sizes is appealing to general consumers, using technology once the preserve of smaller gadgets such as MP3 players, car navigation systems and mobile phones.
Industry experts say slimmer flat-screen TV sets have been led by impressive growth in sales in the high-end product categories. Leading flat-screen TV players such as Samsung Electronics, Japan's Sony and LG Electronics are in position to realize "economies of scale" in slimmer TVs by steadily introducing such sets.
"The selling point is very clear ― it's slim and sleek," Shin Sang-heung, senior vice president of Samsung Electronics Visual Display Division said at the company's technology compound, here, Monday.
Buoyed by the growth in the segment, the companies are focusing on product innovation especially in size. Samsung, the world's top liquid crystal display (LCD) TV set manufacturer unveiled the industry's slimmest 44.4 millimeters thin or 1.9-inch in depth at its widest point "PAVV Bordeaux 850" TV set.
Samsung's latest set is 0.3 millimeters thinner than the 44.7 millimeters "Scarlet Super Slim," which LG electronics introduced in May.
Samsung said the PAVV 850 TV features a design that infuses color in the black bezel by applying the next-generation of dual-injection molding technology.
Since color is infused and not painted on, no volatile organic compounds are emitted during the production process reducing CO2 emissions.
Shin is positive the term "Ultra Slim" will become a key phrase in the global TV industry and the players' strategic focus has shifted to "soft power" such as thickness from the "hard ware" categories ― visual and sound qualities.
According to industry sources, LCD TV sets are typically about 105 millimeters in thickness.
"I don't have any doubts that the penetration rate will be much higher within the next few years even though prices are still the biggest concern," Shin said.
The series 8 LCD high-definition TVs will be available in September and in 46 and 52-inch sizes. The sets will sell for $3,500 and $4,500, respectively.
Slimmer televisions have also boosted earnings.
Backed by an impressive sales of Samsung's Bordeaux series since 2006, the company surpassed 20 percent in market share in the global flat-screen mart for the first time in the second quarter by quantity, according to a research firm DisplaySearch.
Samsung sold 4.83 million sets to grab a 20.4 percent share, followed by Sony’s 3.06 million or 13 percent and LG Electronics 2.35 million at 10 percent.
LED Momentum
Experts say the market for slimmer LCD TVs seems to have secured additional momentum for further growth as the transition from cold cathode fluorescent lamp (CCFL) to light-emitting diode (LED)-based illumination is already under way, initially capitalizing on notebook LCD screens.
LCD televisions today use CCFL backlight technology, however, experts say the LED backlight is a key point to produce more slimmer TVs because the backlit doesn’t require an extra lamp inside the TV.
Costs remain an issue in the wider adoption of LED backlights for larger-sized LCD TVs. But a research firm iSuppli forecast the price gap between CCFL-backlit displays and LED backlights will narrow to within $10 in the next few years.
"Further ahead, larger-sized LCD TVs might be lit by LEDs," said Hong Chang-wan, head of research team at Samsung Electronics Visual Display Division said.
LED-lit displays are set to make up 9 percent of the LCD TV market, a market research firm DisplaySearch said.
Another research firm Insight Media says the price decline for LED backlights will be steep, allowing a rapid changeover to begin from 2011. Using the LED-backlit tool, the cost of a CCFL backlight unit for a 46-inch LCD TV costs about $212. By 2012, the cost will be reduced by nearly 50 percent to $122.
Research firms expect the market for LCD TVs using LED backlighting might account for 50 to 60 percent of all display profits by 2010 as conventional bigger LCD TVs will eventually bottom out, becoming loss leaders, whereas LED-backlit LCD TVs will fill in and command premium profits.
Although the method currently has some technological limitations as it is effective only for relatively small 24- to 30-inch TVs, analysts say the side-lighting approach may be applicable to over 46-inch TVs when combined with two-dimensional dimming and new video algorithms.
"Four parameters are essential for a wider penetration of LED backlighting for LCD TVs _ cost, power savings, picture-quality improvement and a slimmer TV," a Samsung Electronics spokesman said.
Samsung and Japan's Sharp and even LG Electronics have already boarded the LED bandwagon, while Sony might soon join the fray.
Samsung just released 40 and 55 inch Bordeaux LED-backlit LCD TV with a retail price tag of $2,900 and $7,500, respectively for tapping the marketability.
"Studies show that more than 70 percent of Japanese and U.S. consumers will pay an additional $1,000 to buy a much slimmer LED-backlit LCD TV set," the spokesman added.
Hurdles
Driven by such factors, the competition between TV manufacturers to introduce slimmer flat-screen televisions will get fierce. But the question still remains whether LED makers can supply the requisite volumes when the market takes off.
"Scaling production to feed that demand could take a while as the slimmer flat-screen TV market needs to experience a testing period," a high-ranking LG Electronics official said.
Given the buoyant sales of digital televisions in North American and European markets, the demand for LEDs will rise as the diode will be required for backlighting each panel.
