By Kim Yoo-chul
Staff Reporter
Sony is on the verge of losing competitiveness in the next-generation TV war with its biggest rival, Samsung Electronics, as the Japanese firm is facing difficulty in securing key components for light-emitting diode (LED) TVs.
"Sony's attempt to receive cutting edge white LEDs ― a key component for LED TVs ― from Samsung Electronics has failed," a Samsung Electronics executive said on condition of anonymity, Sunday. A Sony spokesperson in Korea was unavailable for comment.
LED backlights are categorized as RGB (red, green, blue) and white. RGB LED backlights have strength in boosting color and sports coverage by dimming to increase black levels in the darker areas of the picture ― but are more expensive. White LED backlights are less expensive and differ little in picture quality on TVs.
Sony, which has been using RGB LED backlights in its LED TV line, is shifting to white LEDs, though sourcing appears problematic due to its deteriorating cash flow.
The company commercialized highly advanced organic LED TVs in 2007, but its focus on RGB backlights hasn't paid off so far because of higher prices, analysts say.
"Sony is urged to boost tie-ups with the tentatively named `Samsung LED' in receiving edge-based white LED chips. It might be difficult for Sony to have strength in this segment without the partnership," another Samsung executive said.
Samsung Electronics, the world's biggest flat-screen TV maker, has made "LED TVs" its new growth engine and plans to get the lion's share of market by launching four models under its PAVV brand.
According to market research firms, the global LED TV market is forecast to rise to eight million by the end of this year.
Samsung has been leading the global flat-screen TV market over the past three years thanks to massive investment in facilities, aggressive marketing and better relations with larger retailers.
Samsung Electro-Mechanics ― an LED component maker ― now supplies most of its edge-based LED backlight modules to Samsung Electronics.
A 50:50 joint venture with Samsung Electronics, "Samsung LED," will run from April this year.
"Our competitors will have LED TV line-ups equipped with edge-based white LED backlights from 2010. RGB LEDs have strength in picture quality but lack price competitiveness," the official said.
LED TVs consume less power than the current mainstream of backlight technology, commonly called "cold cathode fluorescent lamps," or CCFL, used in flat-panels.
They also take up less space and are more environmentally friendly as they don't contain mercury, attracting major TV set makers to allocate massive capital for a bigger share in the promising market.