Samsung LED LCD TV

In recent years, Korean, Taiwanese, and Japanese makers of liquid-crystal display panels have fought hard to establish dominance in the key tech market. And for most of 2007 and 2008 there was plenty of business to go around. Today, though, the economic crisis is slashing demand for the panels, used in flat-panel TVs, computer monitors, and cell-phone screens. While that’s likely to hurt everyone in the battle, the Koreans expect the downturn to play out to their advantage. “This challenging period will give us a good opportunity to widen our lead,” says Lee Bang Soo, a vice-president at LG Display, the world’s second-largest LCD panel maker after its compatriot Samsung Electronics.The Koreans are already gaining. Manufacturing costs today exceed what producers can charge for the panels, so Taiwan’s four biggest makers have slashed output by half or more. AU Optronics (AUO), the leader in Taiwan and the global No. 3, saw its market share for panels bigger than 10 inches plunge to 11% in November, from 19.2% in January, while share for Taiwan’s Chi Mei Optoelectronics fell to 9%, from 12%, says market researcher DisplaySearch. Samsung, meanwhile, increased its share in the segment by 8.5 percentage points, to 32.5%, during the period, and LG jumped 3.1 points, to 23.5%.

One big advantage the Koreans enjoy is their strong ties with TV vendors. Samsung runs an LCD-panel joint venture with Japan’s Sony (SNE), giving it a direct pipeline to the world’s two hottest TV brands. Samsung and Sony together had 42% of the market for LCD TVs in the third quarter of 2008, DisplaySearch estimates. LG Display is the primary supplier for two of the three other top TV brands: its parent, LG Electronics, and Philips, which has a 13.7% stake in LG Display. (Japan’s Sharp, the remaining major player in LCD TVs, makes its own panels.) “Vertical integration with major set makers is vital for us,” says Samsung Vice-President Kwon Gye Hyun.

As a result, Taiwanese LCD-panel makers have been relegated to selling to smaller brands and playing a backup role for the bigger brands. That means their orders get canceled first when markets shrink. LCD TVs account for well over half of all LCD consumption and represent a rare area of potential growth in the consumer electronics industry in the near future. Researcher iSuppli forecasts the global LCD TV market will rise to $101 billion in 2012, from $61 billion in 2007.

While the Taiwanese acknowledge the Koreans are extending their lead, they say the battle is far from over. They’re counting on their relatively strong position in emerging markets and say they will continue to invest in initiatives that will make their operations more efficient. “AU is taking this opportunity to sharpen its core competence,” Andy Yang, a finance vice-president at AU Optronics, wrote in an e-mail. “In addition, our R&D [department] is actively continuing the development of new technologies.”

Still, the Taiwanese have to contend with a weak Korean currency that continues to help Samsung and LG. While Taiwan’s currency was nearly flat against the U.S. dollar in 2008, the Korean won plummeted almost 26% against the greenback, making Korean exports far cheaper. “If the Korean won stays weak, the Taiwanese won’t have any chance to win back their share,” reckons Henry Wang, general manager at Taipei-based researcher WitsView, which specializes in display devices.

A potentially bigger problem is a delay in investing in next-generation production technology. Samsung and LG are the only ones planning to launch new plants this year capable of churning out panels bigger than 52 inches, used for big-screen TVs. Taiwan Premier Liu Chao-shiuan said on Dec. 25 his government would help the island’s LCD industry weather the global recession. Yet analysts say any bailouts won’t allow troubled Taiwanese companies to build new plants costing at least $3 billion each. “They can’t afford to plan for anything else but their survival now,” says Lee Hak Moo, display analyst at brokerage Mirae Asset Securities in Seoul. “The Koreans are poised to increase their lead.”

Source: BusinessWeek

Funai
Funai might not be a household name because it’s the brand behind other brands, mainly lower-priced labels such as Emerson, Sylvania, and Symphonic, that tend to be sold at mass-market stores, such as Wal-Mart. Funai recently acquired the rights to two longtime TV brands, Philips and Magnavox, in the U.S. and Canada (Philips will no longer be making and selling its own sets here). It’s possible that Funai will use those brands, particularly Philips, to gain entry into retailers that don’t carry its other brands.

Haier
Established in America in year 1999. Today, it a tier one brand that competitive with Panasonic, LG and Samsung for electrical appliances. Their LCD TV products range from low-end to high-end for all sizes.

Hewlett-Packard
After forays into rear-projection and plasma, Hewlett-Packard—often known as HP—now sells LCD TVs exclusively. Leveraging its PC heritage, the company is in the forefront of TV interactivity, offering models with MediaPC capability and Internet connectivity.

Hitachi
Hitachi, at one time a leading rear-projection TV manufacturer, now focuses exclusively on flat-panel HDTVs. The company has been strong in plasmas, sometimes offering unusual sizes (such as a 55-inch screen) and resolutions (1024×1080). It previously had a limited LCD line, but it is making a strong push into LCDs with a line of ultra-thin 1.5-inch-deep LCD TVs.

Insignia
Insignia, Best Buy’s electronics house brand for LCD TV and Plasma TV, is exclusively sold by the retailer. Insignia TVs, which are made overseas by contract manufacturers, are positioned as a “value” line offering more features for the price than better-known makes.

JVC
The company’s LCD sets are typically positioned in the mid-to-upper price range. JVC recently signed a deal with Funai to jointly develop and produce LCD TVs. It recently exited the LCoS rear-projector microdisplay business, but continues to make LCoS-based front projectors for the consumer and professional markets. JVC is in the process of merging with Kenwood, a consumer electronics company known largely for car audio products.

LG Electronics
LG is a growing force in the plasma and LCD categories, remember the Scarlet line? Often, the company offers the largest screen sizes available for each type. The company’s newer TVs have had a strong design focus. LG sets typically sell in the mid- and upper price brackets.

Mitsubishi
In LCD TV, Mitsubishi is positioning its sets as a premium line with step-up features (all models are 120Hz, 1080p sets, for example) and ultra-slim bezels for select dealers. The company’s flagship line is the Diamond series. Mitsubishi is one of two major brands (the other is Samsung) still actively selling rear-projection micro-display (DLP) TVs. It is promoting models with 3D technology, and this year will introduce the first set (dubbed Laser Vue) using a laser as a backlight. In the front projector market, it has competitively priced 3LCD-based high-definition (720p and 1080p) models.

Olevia
Olevia, previously named Syntax-Brillian, recently sold its LCoS rear-projection TV business to focus on LCD TV market. It has three distinct lines of LCD TVs: very basic sets value-priced compared with the competition, a step-up series line, and a flagship series that includes additional features.

Panasonic
Panasonic is the market leader in plasma TVs (Panasonic is major plasma TV manufacturer), with an extensive line of sets ranging from 37 inches to 58 inches. Plasma sets are usually competitively priced and are widely available, including at CostCo. The company is also expanding its assortment of LCD TVs this year. Its apparent strategy is to offer LCDs in smaller (37 inches or less) screen sizes that won’t compete with its plasma TV lines. Panasonic is getting out of the rear-projection market, selling off its existing inventory, to focus primarily on flat-panel TVs, which carry the Viera brand. It also sells 3LCD front projectors.

Philips
Philips, which exited the plasma business to focus on LCD models, recently announced that it will be licensing its Philips and Magnavox brands to Funai for use in the U.S. and Canadian markets. As a result, Philips- and Magnavox-brand LCD TVs will be made and sold by Funai, which also controls the Emerson, Sylvania, and Symphonic brands. Philips had used the Magnavox brand for its entry-level products aimed at mass-market retailers.

Pioneer
Plasma stalwart Pioneer has consistently targeted consumers willing to pay more for a “prestige” label, particularly with its higher-priced Elite-brand series. The company offers a line of performance-oriented Kuro plasmas, which are typically priced much higher than its competition. The company recently announced that it would no longer make its own plasma panels but would instead source them from Panasonic (though it will continue to apply its other proprietary technologies to the TVs). In addition, a recent investment in the company by Sharp could result in the first Pioneer-branded LCDs.

Polaroid
Polaroid is a value brand that is often among the lowest-priced sets of its type and size. Polaroid’s TV presence in the U.S. has expanded thanks to increased shelf space at Circuit City and Wal-Mart. Polaroid TVs are made overseas, primarily in China and Taiwan, by contract manufacturers. The Polaroid brand was acquired in 2005 by a former U.S. licensee, Petters Group, which had previously used the brand for TVs and DVD players.

Samsung
Samsung is a top-tier manufacturer in every category in which it participates, and is one of two major brands—the other is Mitsubishi—still making rear-projection microdisplay (DLP) HDTVs. Samsung is often an innovator, as with its use of LED backlighting in rear-projection and LCD TVs, and 3D capability in rear-projection and plasma TVs. Samsung has value-priced and premium lines.

Sanyo
Sanyo’s focus is largely on LCDs TVs and front projectors, though it still has one plasma model. Its flat-panel TVs are sold primarily through Wal-Mart, typically at lower prices than sets from first-tier manufacturers. In front projectors, the company’s 3LCD models compete with entry-level HD models from companies such as Epson, Panasonic, and Optoma.

Sharp
Sharp is a force in LCDs and has been at it longer than almost any other manufacturer. The company sells its TVs under the Aquos brand. It has one of the most advanced LCD panel manufacturing plants in the world and is often an innovator. Like many other major brands, its lines are segmented into several different series. Some of Sharp’s biggest, most innovative sets are pricey; others are competitively priced. The company recently took a stake in Pioneer; the benefits to Sharp are likely to be audio related.

Sony
Sony is a powerhouse LCD TV manufacturer with one of the most extensive product lines of LCD sets, which are sold under the Bravia name. There are several distinct Bravia lines with varying levels of features and quality; most are mid- to high-priced, and its flagship XBR-series models are generally the most expensive of their type. Sony recently started offering a low-priced line for mass merchants such as Target and Wal-Mart. Sony has exited the rear-projection microdisplay business (LCoS), but continues to make front projectors for the consumer and professional markets.

Toshiba
Toshiba, which sells LCDs under the Regza label, has some sets that emphasize value, with features comparable to those of other major brands, but generally at lower prices. Its Cinema Series models are higher priced and loaded with features. The company, which makes LCD TVs in a large range of sizes, has a new line with very thin bezels, allowing a larger screen size to be used in a smaller physical space.

Vizio
From its humble start just a few years ago as a warehouse-only brand, Vizio has emerged to become a top-tier TV brand whose sets are now also available in Wal-Mart and in some Circuit City and Sears stores. Vizio TVs, which are made overseas by contract manufacturers, are generally sold at very low prices compared with more established names, but the company has announced some new models that will carry higher prices and some step-up features.

Westinghouse
Westinghouse Digital, which licensed the venerable brand from Westinghouse Electric, has emerged as a lower-priced alternative to more established LCD brands. It has typically been among the first to offer step-up features such as 1080p resolution at lower prices than its competitors.