'Apple unlikely to launch TV business'
Paul Gray DisplaySearch executive
By Kim Yoo-chul
SARDINIA, Italy _ Apple isn’t positioned well to start its own television business to directly compete with Samsung in the global TV market, according to a global market research firm, Sunday.
“The Cupertino-based outfit has very limited product diversity. Most of its key products are selling below $1,000 and high margins,” Paul Gray, an executive of DisplaySearch, told The Korea Times.
“When you think about TVs, TVs have much thinner margins but also high product diversity in sizes and regional broadcast variations. The TV business has consistently been driven by new technologies that excite consumers. Apple won’t take a huge risk with unproven technologies.”
Gray, a specialist in analyzing the trend in the European TV market, said the large product size means that logistics is a key part of the business, which bodes ill for Apple.
The interview was conducted on the sidelines of this year’s IFA Global Press Conference here, which wrapped up Sunday after a four-day run.
The executive also said Apple is unlikely to use OLED technologies in its popular i-devices.
“Because Apple prefers to use matured display-making technologies, it’s unlikely for Apple to take on high risk by using OLED displays to iPhones and iPads,” he said.
The ongoing dispute between Samsung is also affecting Apple’s display procurement strategies.
“Samsung may differentiate itself by increasing the use of OLED displays. For Samsung, it doesn’t make sense to share its OLED technologies for mobile devices,’’ Gray said.
In a related note, Apple is heavily cutting its reliance on its Korean business partner.
“Samsung panels are being used in Apple devices. Separately, Sony of Japan is buying panels from Samsung but this may decrease as Sony increases its outsourcing of TV production. It’s no surprise that a complete divorce may come between Samsung and Apple,” he said. “That means Samsung is facing a dilemma regarding Apple, which is its biggest customer and its greatest competitor at the same time.
He also urged Samsung Display and LG Display to end their disputes over the patent of OLED technologies and reach a patent-sharing agreement as early as possible, saying that’s necessary for them to stay ahead of their Chinese rivals.
“I think that Samsung and LG need to consider where their biggest threats lie. It could be desirable for the companies to share their patents,” Gray said. “So far the fights have been a very short-term strategy. Chinese companies are rapidly acquiring the OLED technologies based on long-term plans.”
The OLED is the next big thing in the display industry with almost all major manufacturers investing in them. DisplaySearch said Samsung has an advantage in the race for OLED TVs as it has already got a small screen OLED business, although LG was the first to commercialize these technologies.
“LG’s W-OLED technology may have production advantages over RGB-OLED technology being pushed by Samsung. But Samsung is making money in small OLED screens,” he said.