LG vows to push for high-end OLED TVs

By Yoon Sung-won

Kwon Bong-seok, executive vice president of LG Electronics

LG Electronics said Monday it will focus on high-end ultra organic light-emitting diode (ultra OLED) TVs ― upping production by 70 percent this year ― to boost the profitability of its OLED TV business.

The world’s leading TV maker said more than half of its OLED TV sales have come from ultra OLED TVs in the first half of this year, compared to one-third last year, on the back of rapid growth of the high-definition 4K TV market worldwide. In the same period, the operating-profit-to-sales ratio of the company’s home entertainment (HE) business division reached 8.1 percent.

“Through a period of meaningful growth in the last three years, OLED has become the mainstream in premium TVs,” said Kwon Bong-seok, executive vice president of LG Electronics’ HE Business Division, during a press conference at the IFA 2016 electronics fair in Berlin, Saturday local time. “OLED will solidify its position as a central megatrend this year.”

LG Electronics claimed that its OLED TVs have caused a restructuring in the global premium TV market as its products hold a market share of about 90 percent. It has diversified size options of OLED TVs from 55 inches to 77 inches.

The company also said it is strengthening distribution channels in the global market, cooperating with Best Buy, North America’s largest electronic outlet chain, to set up display OLED TVs giving customers a closer look in more than 400 stores in the United States.

LG Electronics expects that more than 10 electronics makers will be selling OLED TVs within this year amid intensifying competition with the LCD TV sector. In recent years, latecomers in the display industry including China and Taiwan have conducted massive investments in the LCD display panel sector, instigating fiercer competition between TV makers. Targeting the premium TV market, more brands are looking to roll out OLED TVs.

The electronics maker said it will also boost its business-to-business sales of OLED TVs. Besides targeting hotels, schools, fitness centers and large-scale events such as conferences, the company said it will strengthen its leadership in the premium commercial display market with OLED digital signs.