The production of Guangzhou 8.5 generation OLED panel factory will bring new opportunities to improve the cost competitiveness of OLED TV. On the one hand, it will reduce import tariffs, and on the other hand, it will consider leaving the OLED module to the color TV factory.
On July 24, LGDisplay China Marketing Executive Ann Chengmo told First Financial Reporter that Guangzhou 8.5 generation OLED panel factory will be put into operation in the third quarter of this year. At present, it is steadily promoting mass production. At the end of this year, the monthly production capacity will reach 60,000 films. In the future, additional investment will be considered according to market conditions.
At present, LGDisplay has issued an invitation letter for the completion ceremony of Guangzhou OLED panel factory on August 29.
Guangzhou 8.5 generation OLED panel production line is the worlds second and Chinas first 8.5 generation OLED panel production line. Anchor said that the production capacity of Guangzhou factories at the end of this year reached 60,000 films per month, and that of South Korea factories at 70,000 films per month, which will enable LGDisplays OLED TV panel to reach 130,000 films per month by the end of this year.
In addition to increasing production capacity, LGDisplay will also expand the product line of OLED TV screens. LGDisplay will launch 88-inch 8K OLED TV screens this year and 77-inch and 65-inch 8K TV screens in 2020, according to Anchengmu. At the same time, the 4K OLED TV screen will be launched 48-inch 4K products on the basis of the current three specifications of 55, 65 and 77 inches.
As a strategic partner of LGDisplay, Skyworth launched a price war for OLED TV in July. In response, Anchengmu said that the production of Guangzhou 8.5 generation OLED panel factory will bring new opportunities to improve the cost competitiveness of OLED TV. On the one hand, it will reduce import tariffs, and on the other hand, it will consider leaving OLED module to the whole color TV plant.
Previously, LGDisplay provided OLED TV panels to color power plants in a modular mode. In the future, we can provide OLED panel glass, which can be made by the color power plant itself. This can greatly save the cost. Anchengmu revealed that Skyworth is promoting its own OLED module model in order to improve the competitiveness of OLED TV. In addition to Skyworth, we are also discussing this model with other manufacturers.
Zhang Zhongcheng, general manager of Chuangwei Guangzhou Branch, said that LCD TV has fallen into the quagmire of price war, and LGDisplay Guangzhou OLED panel factory is about to mass produce, so Chuangwei launched a storm of popularization of OLED TV at this time. Sales in July will reach 10,000. This year, the sales target of Chuangwei OLED TV is 200,000.
First financial reporter noticed that Philips followed Skyworth in Beijing East Platform, and 55, 65 inch OLED TV prices were lowered. Tian Chunzhi, general manager of Kangjia South China Region, said that in the promotion of OLED TV, the color TV industry is a competitive relationship. As long as OLED TV reaches the price range accepted by consumers, sales will rise rapidly.
According to AVCs summary report on Chinas color TV market in the first half of 2019, the sales volume and price of Chinas color TV sets fell sharply in the first half of this year, with 22 million units sold, a decrease of 2.7% over the same period of last year; the sales volume of 64 billion yuan, a decrease of 11.8% over the same period of last year; the average price of color TV sets dropped by 9% last year, and the color TV market has continued to decline by 9.4% in the first half of this year. Its the most dangerous moment.
In order to enhance the value of color TV, the OLED TV camp is expanding. This year, Hisense has officially joined the ranks of OLED TV. Up to now, Skyworth, Sony, LG Electronics, Kangjia, Hisense, Changhong and Philips have launched OLED TV in the Chinese market.
However, the penetration rate of OLED TV in China is still lower than that in developed countries in Europe and America. From January to April 2019, in the high-end color TV market with a unit price of more than $2000, the penetration rate of OLED TV in the United States and Europe has reached 42% and 55%, respectively, while the penetration rate of OLED TV in China is only 17%.
Although Chinas market penetration is low at present, it has a bright future. According to Anchengmu, the annual capacity of Chinas TV market is 56 million. In 2018, the population of Chinas middle class has exceeded 200 million. In addition, Chinese consumers like new products and new technologies, so the scale of Chinas OLED TV market will reach 2-3 million in two or three years.
Even so, the proportion of OLED TV in the whole Chinese color TV market is not high. In Anzhengmus view, OLED TV is still positioned in the high-end market after the expansion of OLED panel capacity. In order to be different from the traditional LCD TV, LGDisplay will cooperate with color power plants to develop various new forms of OLED TV, such as wallpaper TV, spontaneous voice TV, curly TV, etc. In the age of 5G, AI and IOT, display is everywhere. OLED TV will innovate its product form and apply it to various scenarios by virtue of its wide perspective and flexibility.
At present, OLED TV panel is still in short supply. Anchengmu said that Samsung is developing QD-OLED TV panels, and large panel companies in China are also developing printed OLED TV panels. OLED TV industry chain is composed of panel, machine, material and component factories. With the continuous improvement of OLED industry ecology, the market scale of OLED TV will continue to expand.
Kong Xiangjian, general manager of Suning Easy-to-buy Guangzhou Management Center, revealed that sales of Suning OLED TV increased by 30% year-on-year this year. With the coming production of Guangzhou OLED panel factory and the intensification of promotion of OLED TV in color power plants, the growth rate in the second half of the year is expected to further improve.
Source: First Financial Responsibility Editor: Yao Liwei_NT6056