[Asia Economy Reporter Jeong Hyunjin] LG Electronics is expanding its organic light-emitting diode (OLED) TV business, which marks its 10th year this year, to dominate the premium TV market. The company is expanding its main product, OLED TVs, to the world's largest 97-inch and smallest 42-inch sizes, increasing its TV lineup to eight models?the most in the industry. It is also expanding the lineup of OLED evo, which features next-generation panels, and actively targeting the global market by introducing lifestyle products such as StandbyME, which gained great popularity in Korea, overseas.
Adding the world's largest 97-inch and smallest 42-inch lineup... Completing a total of 8 models
On the 4th, LG Electronics unveiled its 2022 LG OLED TV lineup and TV business strategy during CES 2022, the world's largest IT and home appliance exhibition. LG Electronics announced that it will expand its OLED TV lineup to eight models, the most in the industry. The strategy is to meet the demand for ultra-large premium TVs, second TVs, and gaming TVs through the world's largest 97-inch and smallest 42-inch OLED TVs. The release is scheduled for March in Korea, North America, and Australia, and April in other regions.
LG OLED evo, which uses next-generation OLED panels, will significantly increase its lineup from one series with three models last year to two series with eleven models, upgrading image quality by adding high-efficiency panels and advanced image processing technology. LG Electronics explained that it will actively expand next-generation OLED technology downward and sequentially increase the lineup so that many customers can experience the best image quality.
The core of LG Electronics' TV business strategy is to strengthen the competitiveness of OLED TVs. LG Electronics commercialized the world's first OLED TV in 2013 and currently holds more than 60% of the global OLED TV market share. With the premium TV market rapidly growing centered on OLED TVs due to pent-up demand caused by COVID-19, LG Electronics is enhancing its competitiveness to solidify its leadership with the world's largest and most diverse lineup.
LG Electronics also applied innovative technology to its OLED TVs this time. The AI Alpha 9 processor, which integrates image and sound data and know-how, has been upgraded to the 5th generation. Upscaling, which reduces screen noise and enhances resolution, has become more sophisticated, and Dynamic Tone Mapping Pro divides each scene on the screen into thousands of small zones to maximize HDR effects for each zone. The Dynamic Vivid mode enhances color expression to maximize the performance of self-emissive OLEDs, and it provides vivid sound by converting 2-channel audio sources into virtual 7.1.2-channel surround sound.
webOS 22 has evolved based on personalization, allowing customers to receive customized content recommendations based on their viewing history when selecting a TV account. LG Electronics also introduced a new feature that links two or more TVs connected to the same network, enabling users to continue watching a drama from the living room TV on the bedroom TV. LG Electronics is advancing smart TV content and services based on the openness and accessibility of webOS.
OLED TV market to reach 8 million units this year... More than 20 global companies participating
According to market research firm Omdia, the OLED TV market is expected to reach a total of 8 million units this year, with a market value of approximately $14 billion (about 16.7 trillion KRW). More than 20 global TV manufacturers, including LG Electronics, Sony, Panasonic, and Philips, are currently participating in the OLED TV market, and Samsung Electronics is also expected to enter this year. Industry insiders predict that Samsung Electronics will source TV OLED panels from LG Display, and QD-OLED TVs equipped with quantum dot (QD) OLED panels developed by Samsung Display are expected to be unveiled later.
At a non-face-to-face press conference held on the same day, Park Hyung-se, head of LG Electronics' HE Business Division, said, "We have not heard any official news that Samsung Electronics will enter the OLED TV market," but added, "If they join, it would be a positive sign for the expansion of the OLED market and ecosystem, and we would welcome it."
LG Electronics' Hyung-se Se Park, Head of the HE Business Division, is introducing this year's new TV product lineup and business strategy at a press conference on the 4th. (Photo by LG Electronics)
Regarding the TV market outlook this year, Park said, "Global TV demand has remained at around 200 to 220 million units annually for the past 15 years. I do not expect TV demand to decrease significantly this year. I believe the existing level will be steadily maintained," adding, "We are aiming to expand sales mainly in premium TVs, and OLED will continue to play a leading role this year."
Addressing concerns about rising costs due to increased logistics expenses, Park said, "It is true that logistics and material costs have increased, and this trend is expected to continue this year. We will continuously establish optimized operational strategies through the business operation center to reduce material costs and strive to improve profitability." Regarding semiconductor supply issues, he evaluated the situation as "serious," but said, "Fortunately, chips used in key image quality components are internalized and supplied in-house, and other semiconductors are sourced through dual or triple sourcing systems to minimize supply disruptions."
In addition to OLED TVs, LG Electronics will release lifestyle products that innovate TV form factors. Starting this year, it will actively expand overseas markets for OLED evo with gallery design that adheres entirely to the wall, the recently launched OLED evo Objet Collection, and LG StandbyME. The company plans to operate a full lineup of TVs equipped with all existing TV display technologies, from self-emissive displays led by OLED TVs to QNED MiniLED, QNED, and NanoCell high color reproduction LCD TVs.
Park expressed confidence, saying, "We have always focused on maximizing customer value and have planned new products accordingly. We have equipped many features to enhance customer experience value and prepared products that deliver the best image and sound quality, so you can look forward to them."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
