Samsung plans 60 million TV sales next year
With UHD and QD TVs, top TV producer aims to recover
By Kim Yoo-chul
Samsung Electronics is aiming to increase its flat-screen TV sales next year by as much as 20 percent while pursuing a "dual-track" strategy ― promoting LCD TVs with quantum dot technology (QD TV) and also its curved ultra high-definition viewing quality TVs (UHD TV).
For the first nine months of this year, the world's biggest TV manufacturer shipped some 37 million flat-screen TVs to major retail channels globally.
Samsung said it sold 12 million TVs in the third quarter and expects its sales to rise by 40 percent in the last three months, increasing this year's total shipment to 54 million.
"The global TV market hasn't been strong as it was before due to the rising popularity of tablets, smartphones and phablets. Also, Chinese TV manufacturers are posing a threat as they've been consistent in enticing customers with budget models. Samsung's internal target for next year is over 60 million," said one of Samsung's top-tier display suppliers by telephone.
The executive, who asked not to be identified, added the company remained bullish over the outlook for the two LCD TV variants as the pricing level for UHD TVs has dropped to a manageable level, while the global TV leader believes QD TVs are seeing enhancements in manufacturing technology.
"It's highly unlikely that Samsung's TV business will report a huge profit from its business next year as competition will be getting fiercer. But Samsung could increase its global share as its QD TV technology is addressing environmental issues," said another industry official.
QD technology looks suspiciously similar to organic light-emitting diode (OLED) technology. OLED cells don't need pricey backlights and are extremely thin and are based on liquid crystal cells ― all traits that QD technology claims.
While QD TVs require the use of cadmium in manufacturing, Samsung is teaming up with Dow Chemical and Nanoco to put cadmium-free materials into its QD TVs and to meet environmental regulations imposed by governments.
Such cadmium-free QD TVs will be displayed during a technology exhibition early next year in Las Vegas, said sources.
"Next year, content providers, satellite broadcasters and leading entertainment companies will roll out more content that is customized to large-sized displays which have clearer images, and that will help Samsung expand its TV share," said the executive.
In order to boost sales of those TVs, top management will fly to Las Vegas to search for new business opportunities especially in the business-to-business (B2B) segment.
That means major studios, organizations, institutions, public and private offices can use Samsung TVs to display their own content.
Samsung said QD TV is one of the possibilities for its flat-TV business. However, the company said nothing has been decided yet.
But analysts expect a new order to prevail in the industry as the rise of content for UHD picture quality is calling for major TV manufacturers to push TVs that have vivid images and cost-effectiveness, such as QD TVs.
"In the past, QD TVs had been failed to take off. But QD TVs will go into the mainstream in the industry over the next three years," said IHS analyst Hong Ju-shik.
On a related note, Samsung's rival LG said it will also pursue a "dual-track" strategy along with Samsung by rolling out QD TVs.
LG is currently focusing on OLED TVs, while Samsung is using OLED displays only for mobile devices such as smartphones and tablets. LG plans to ship as much as 36 million TVs next year, up from this year's estimated 32 million.