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Price to restrict OLED TV sales

Jack Loo | July 31, 2012
Consumers likely to prefer cheaper LED TVs: ABI Research

The high price of OLED TVs is likely to limit its adoption rate, according to analyst firm ABI Research.

Analysts say OLED TVs are expected to comprise less than one percent of flat panel TV sales through at least 2013, reaching nine percent of units by 2017.

In contrast, LED/LCD TVs, which often offer thinner form factors and less power consumption over traditional LCD TVs, are expected to grow from 35 percent of the market in 2011 to 75 percent in 2017.

2012 OLED TVs from Samsung and LG are expected to cost well over US$5,000, and closer to US$10,000, at sizes less than 60" - Sony and Panasonic are partnering to release larger screen OLED TVs in 2013.

At these prices consumers are challenged with selecting picture quality and form factor over size - consider that an equivalent sized LED TV costs thousands less and a Sharp 80" LED TV can be had for prices closer to US$4,000.

"While display technology is cited as very important as well, the prices OLED TVs are expected to command, at least through 2013, will make it a difficult sell for most consumers," said practice director Sam Rosen.

Scale will eventually bring prices down, but with LED TVs supporting form factors approaching the svelteness of OLED TVs, many consumers may still opt for the less expensive alternative, limiting the rate at which scale is reached.

Senior analyst Michael Inouye added: "Picture quality is also highlighted as a key benefit for OLED screens, but consumer behaviour suggests this might not engender as much perceived value as some might presuppose.

"In the end OLED TVs, at least in the beginning, will likely be more of a statement of status or strong appreciation of form factor than video quality," said Inouye.

 

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