OLED TV shipments likely to stay nascent this year

Despite ambitious plans by tech titans Samsung Electronics Co. and LG Electronics Inc. to roll out organic light-emitting diode (OLED) TVs this year, shipments are expected to be tepid as the two leading TV makers face difficulty in production yields, a report showed Tuesday.

Compared with liquid crystal displays that require a backlight, OLED displays enable slimmer designs and more vivid images, a factor that has led TV makers to turn to the new technology amid softening TV demand.

Worldwide shipments of OLED TVs are forecast to reach 500 units this year and grow to 50,000 units in 2013, according to the projection by research firm NPD DisplaySearch.

"If we do see OLED TVs hit the market within 2012, the shipments will be used primarily for retail demonstrations in developed regions like North America and Europe," said David Hsieh, the vice president of the research firm.

DisplaySearch noted mass production challenges and high retail prices as some hurdles to plans to launch the OLED TVs in 2012.

The data, however, expected OLED TV shipments to start gaining momentum in 2014 when they first break the 1 million mark with annual shipments of 1.7 million units. By 2016, the figure is forecast to hit 9 million units, claiming over 3 percent of the global TV market.

The projection came amid growing doubts that Samsung and LG will not be able to commercialize OLED TVs this year due to difficulties in securing product yields.

Earlier this year, the two companies competitively showcased 55-inch OLED TVs and announced plans to roll them out before the end of the year. But with only two months left in 2012, OLED TVs are still not commercially available.

Samsung and LG said they are still aiming to commercialize OLED TVs this year.

In a recent meeting with investors, LG Display Chief Financial Officer James Jeong reiterated plans to commercialize the TVs this year, but said initial marketing schedules may have to be adjusted.

Jeong also said while a small volume of OLED TVs may be released this year, a stable mass production system is likely to get settled in the first half of next year.

Meanwhile, a Samsung PR official said the company has no change in plans announced by its consumer electronics chief Yoon Boo-keun during this year's IFA technology fair. Yoon had said the company aims to roll out OLED TVs in the fourth quarter. (Yonhap)