Advanced TV Price Competition
Mini-LED TVs have not been around for long. TCL (000100.CH) released the first mini-LED TVs in late 2019 and continues to push the technology to lower priced models in this year’s 3rd iteration, while others are just beginning to push the technology into what are usually high-end or premium TV lines. That said, the price competition between the few TV brands that are offering commercial mini-LED sets has already begun, with each trying to offer mini-LED, along with other features at a price just a bit lower than the competition.
Samsung (005930.KS) has taken the high road with mini-LED TVs, offering its NEO QLED (released in March in some areas) for ~$2,599 (65” 4K model), while LG Electronics (066570.KS) is about to release its mini-LED line of what it says will be 10 models before the end of June. The 65” 4K model is expected to sell for ~$2,200, with models between $200 and $400 less than the Samsung equivalents. First mover TCL is also expected to release its next mini-LED line before the end of this quarter, with a 65” 4K model selling for $1,698, and maintaining at least a $100 to $300 lower price point than LG across the line. A typical ‘generic’ 65” 4K TV sells for between $333 and $1,400.
HiSense (600060.CH) is also expected to release something similar to a mini-LED TV in the 1st half of the year, but we have not seen pricing other than ~$3,500 for a 75” model. The Hisense sets differ in that instead of using mini-LEDs as a backlight source, they use a 2K black and white LCD display to light the main 4K display. This would be the equivalent of over 2.2m mini/micro LEDs in a backlight and should give the highest level of backlight control and therefore contrast of all systems other than micro-LEDs. Since the cost of displays has been rising this two display system might not prove as feasible as it was when LCD panel prices were declining, but HiSense has not abandon the technology yet.
With pressure to contain costs squarely on the TV brands in the mini-LED realm, the competition between brands has already begun, with TCL making sure that the two South Korean brands are relatively limited in the premiums they can charge for mini-LED TVs. Likely working at lower margin levels than LG or Samsung, TCL has been at the mini-LED game longer than both from a commercial perspective, and while both Korean competitors are developing their own mini-LED supply chains, likely including affiliated companies, TCL also has access to China’s vast LED industry and will no doubt keep up the price pressure regardless of other features offered by Samsung and LG. While LCD based TV (which mini-LED TVs are) prices continue to rise, the premium TV segment is becoming more valuable to TV brands, which implies an expansion of mini-LED TV set offerings, but pressure from TCL, and eventually other Chinese TV brands, will favor consumers, who will see mini-LED models continue to decline in price relative to generic LCD TVs.
Samsung (005930.KS) has taken the high road with mini-LED TVs, offering its NEO QLED (released in March in some areas) for ~$2,599 (65” 4K model), while LG Electronics (066570.KS) is about to release its mini-LED line of what it says will be 10 models before the end of June. The 65” 4K model is expected to sell for ~$2,200, with models between $200 and $400 less than the Samsung equivalents. First mover TCL is also expected to release its next mini-LED line before the end of this quarter, with a 65” 4K model selling for $1,698, and maintaining at least a $100 to $300 lower price point than LG across the line. A typical ‘generic’ 65” 4K TV sells for between $333 and $1,400.
HiSense (600060.CH) is also expected to release something similar to a mini-LED TV in the 1st half of the year, but we have not seen pricing other than ~$3,500 for a 75” model. The Hisense sets differ in that instead of using mini-LEDs as a backlight source, they use a 2K black and white LCD display to light the main 4K display. This would be the equivalent of over 2.2m mini/micro LEDs in a backlight and should give the highest level of backlight control and therefore contrast of all systems other than micro-LEDs. Since the cost of displays has been rising this two display system might not prove as feasible as it was when LCD panel prices were declining, but HiSense has not abandon the technology yet.
With pressure to contain costs squarely on the TV brands in the mini-LED realm, the competition between brands has already begun, with TCL making sure that the two South Korean brands are relatively limited in the premiums they can charge for mini-LED TVs. Likely working at lower margin levels than LG or Samsung, TCL has been at the mini-LED game longer than both from a commercial perspective, and while both Korean competitors are developing their own mini-LED supply chains, likely including affiliated companies, TCL also has access to China’s vast LED industry and will no doubt keep up the price pressure regardless of other features offered by Samsung and LG. While LCD based TV (which mini-LED TVs are) prices continue to rise, the premium TV segment is becoming more valuable to TV brands, which implies an expansion of mini-LED TV set offerings, but pressure from TCL, and eventually other Chinese TV brands, will favor consumers, who will see mini-LED models continue to decline in price relative to generic LCD TVs.
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