Samsung, LG, Sony, Toshiba Fighting TV Battle in US
By Kim Yoo-chul
Korea Times Correspondent
LAS VEGAS ― The world's leading flat-screen TV makers, including South Korea's Samsung and LG Electronics, and Japan's Sony are determined to fight for a bigger share of the U.S. TV market, but with different strategies.
Samsung, the world's largest maker of LCD screens, hopes to maintain its TV leadership in North America with a new line of high-end, ultra-slim, energy-efficient televisions using third-generation LED technology.
"In 2009, Samsung targets to sell 26 million flat-screen TVs ― more than 22 million LCDs and over three million plasma screens ― with a full-line up of LED TVs ranging from 42-inches to 50-inches," Park Jong-woo, chief of the company's digital media division, told reporters, Thursday (Korean Time) at the Consumer Electronics Show (CES).
The revised targets represent an increase of 10 percent for LCD TVs from last year and up 33 percent for plasma screens, Park added.
"Now is time for the global TV industry to see rapid consolidation. We will maintain our aggressive stance, continuously, hoping to increase our share," he said.
At a press conference earlier in the day, Samsung unveiled its new "Luxia" line, equipped with LED backlighting, allowing for LCD TVs that are brighter and more environmentally friendly. The new Samsung TV sets are only about an inch thick.
"We will commercialize two Luxia models ― 6000 and 7000 ― in the spring, with a price tag of about $2,000," Yoon Boo-keun, executive vice president of the company's visual display division, told The Korea Times.
"We have engaged in detailed talks with our clients on whether to release the models as a limited edition or not," he added.
Samsung plans to increase the proportion of LED TVs to over 10 percent, taking up over 60 percent in the U.S market for over 40 inch sets, according to Samsung officials.
In addition, Samsung presented more details of its deal with Yahoo to bring the Internet to its TVs.
Starting in the spring, the proposed service will allow people to stream videos, share photos, track stocks and news and engage in an array of other online activities via their TVs.
LG Electronics, however, is taking a different route, aiming to increase its share in North America by strengthening its sales outlets.
At a separate press conference, LG said it plans to focus on a mid-tier level 32- and 42-inch sets as its main priority.
"We aim to boost tie-ups with larger retailers after Circuit City's filing for bankruptcy," Michael Ahn, CEO of LG Electronics North America, said.
"By steadily keeping the premium strategy, we will achieve a 10 percent market share in North America this year," he said, adding its North America unit will experience a "tough" period in 2009.
LG, trying to ride out the slump while sustaining product innovation, introduced a dozen of high-definition TVs at the CES, in sizes ranging from 19 to 60 inches.
"The brand image of LG's flat-screen TVs has been boosted recently, meaning the possibility of a price war between rivals is highly unlikely," Ahn said.
LG's North America division aims to maintain a $13.2 billion sales level in 2009 ― similar to that achieved last year ― by steadily spending on research and development (R&D) and marketing.
Sony Lacks 'Killer Product'
Japan's Sony unveiled its new VE-5 series of TVs, which reduces power consumption by more than 40 percent compared to its other LCD TVs. But most of its products are "mid-level" sets.
"Overall (TV) sales in the United States have been declining," Sony Electronics President Stan Glasgow said in a press conference. Sony Electronics is the Tokyo-based conglomerate's U.S. unit.
As a breakthrough to revive sagging momentum in North America, Sony plans to introduce 26-inch to 52-inch sets by the summer. But analysts believe the moves don't amount to anything surprising in terms of technology.
Officials say Sony sold some 14 million LCD TVs, last year ― failing to meet its revised target of 16 million ― despite aggressive price cuts.
"What Sony needs for the time being is to sell more TVs at affordable prices. Introducing flat-screens equipped with striking technology is not their primary concern," said a high-ranking industry source.
The Sony spokesman wasn't available for comment on further strategies in North America. The Japanese firm trails Samsung Electronics in the global LCD TV market.
Toshiba followed Sony by setting its TV strategy to focus on mid- and small- size sets.
"No real volume over 55-inch sets," Scott Ramirez, vice president of TV marketing, said at a press conference.
Toshiba plans to launch an advanced TV powered by its Cell high-performance microchip, enabling TVs to simultaneously show up to 48 separate moving pictures on one screen, this year.