OLED TV – A Good Year
We have seen estimates for OLED TV shipments increase this year, increasing from just under 6m units (est. in 2020) to over 6.1m and more recently to 6.5m units, with shipments in 1H more than double last year’s 1H. There are two reasons for the increase in OLED TV sales this year, the first being LG Display’s (LPL) increased capacity, along with the increased availability of smaller sized (48”) models, which carry a lower price and therefore can increase the overall unit volume. The second, and most important is the price of OLED TVs, which both in absolute terms and against rival LCD TVs have worked toward increasing overall unit volume.
LG Display continues to increase its OLED TV production efficiency using MMG (Multi-mode glass), a process that allows for the production of multiple size panels on a single sheet of substrate, which can improve substrate usage efficiency by very substantial amounts (see table below). This allows LG Display to reduce OLED panel prices while maintaining margins and allows OLED TV set brands to lower OLED set prices during a period when LCD TV set prices have been rising. In order to quantify just how much OLED TV prices have moved this year, we looked at all 12 OLED TV models released by LG Electronics (066570.KS) this year and tracked pricing from its initial price through current selling price. We note that all prices shown are from Amazon (AMZN) and not 3rd party sellers, and excludes a number of LG’s more esoteric OLED products such as its rollable TV.
Of the 12 OLED models, all were at their lowest price points for the year and only one model saw a peak higher than its initial price. The entire line has seen an average price drop of 27.1% from initial pricing, and a 28.5% from peak pricing. 48” sets saw the biggest decrease, averaging 36.3% from peak, while 83” saw the least, dropping an average of 22.3% from peak, while 55”, 65”, and 77” saw price drops of 26.9%, 30.0%, and 25.7% respectively. While OLED TVs are still generally more expensive than LCD or quantum dot enhanced LCD TVs, and still fall into the ‘premium TV’ category, they have become far more affordable this year than in the past, especially relative to their biggest competitor, LCD TVs. We do note that as LCD TV panel prices decline, as they have been doing for the last two months, some of the relative price difference will be eaten away, but given that a considerable amount of high-priced TV panel inventory still exists in production or transport, we expect lower TV prices will take some time to appear in full stead. In the interim OLED TV will have a good year.
LG Display continues to increase its OLED TV production efficiency using MMG (Multi-mode glass), a process that allows for the production of multiple size panels on a single sheet of substrate, which can improve substrate usage efficiency by very substantial amounts (see table below). This allows LG Display to reduce OLED panel prices while maintaining margins and allows OLED TV set brands to lower OLED set prices during a period when LCD TV set prices have been rising. In order to quantify just how much OLED TV prices have moved this year, we looked at all 12 OLED TV models released by LG Electronics (066570.KS) this year and tracked pricing from its initial price through current selling price. We note that all prices shown are from Amazon (AMZN) and not 3rd party sellers, and excludes a number of LG’s more esoteric OLED products such as its rollable TV.
Of the 12 OLED models, all were at their lowest price points for the year and only one model saw a peak higher than its initial price. The entire line has seen an average price drop of 27.1% from initial pricing, and a 28.5% from peak pricing. 48” sets saw the biggest decrease, averaging 36.3% from peak, while 83” saw the least, dropping an average of 22.3% from peak, while 55”, 65”, and 77” saw price drops of 26.9%, 30.0%, and 25.7% respectively. While OLED TVs are still generally more expensive than LCD or quantum dot enhanced LCD TVs, and still fall into the ‘premium TV’ category, they have become far more affordable this year than in the past, especially relative to their biggest competitor, LCD TVs. We do note that as LCD TV panel prices decline, as they have been doing for the last two months, some of the relative price difference will be eaten away, but given that a considerable amount of high-priced TV panel inventory still exists in production or transport, we expect lower TV prices will take some time to appear in full stead. In the interim OLED TV will have a good year.
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