XXL

XXL
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We have noted recently that Sony (SNE) has shown a prototype of a new Mini-LED backlight system that uses colored LEDs instead of the usual white (or blue) LEDs.  The system, which is expected to be commercialized sometime this year, should be able to deliver color purity that would rival OLED (See “Resurrection” (03/24/25) for more details).  However, Chinese TV set brand Hisense (600060.CH) also announced a similar RGB Mini-LED 116” set that would directly compete with Sony and others who are developing the same technology including Samsung (005930.KS), LG Electronics (066570.KS), and TCL (000100.CH).
While RGB backlight technology has the potential to enhance the quality of LCD based TV sets, once again extending the life of LCD as a display technology, there are two questions that must be answered when evaluating whether RGB backlight technology will be a gamechanger, or whether it will be just a marketing gimmick to bring shoppers over to the premium TV set section on the retail floor. 
The first is whether enough TV set buyers will be able to discern enough of a difference between Tv sets using RGB backlights and those using more standard white or blue backlights.  Unfortunately much of the feedback on RGB backlight systems comes from those at shows where such displays are being shown, and most of those viewers are there because they either work in the CE industry or report on it.  This leads to a more biased view of new display technologies and one that is a bit removed from that of the average consumer, so the true test will come when such sets are on the floor at Best Buy (BBY) or WalMart (WMT).
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The second issue is price.  Most new display technologies, when initially released, carry a large price tag, as in many cases the sets are produced almost by hand until brands are able to develop cost-effective mass production processes.  A good example would be Samsung’s Micro-LED TVs (vastly different from Mini-LED TVs), which when released last June started at $110,000 for an 89” set and climbed to a jaw dropping $150,000 for the 114” set, putting them at the very top of the premium Tv market.  This does not lead to large sales volume but can be used as a banner for the entire premium Tv line.

However, things are different now.  The battle for supremacy in the display and TV markets is no longer a gentlemen’s game, where a civil meeting between rivals might have been held to discuss ways to avoid conflicts.  Now Chinese brands are willing to take that same discussion out to the back alley if they think they can gain share over incumbents, with those battles being waged primarily with product pricing.  It has become ever more difficult for brands that are known for their premium pricing, Sony in particular, to offer a new technology or improvement at such lofty prices, as Chinese CE companies are not only able to quickly match the technology, but are willing to offer it at a far more reasonable price.
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One might expect Sony, if and when they commercialize their RGB Mini-LED TV, to offer it at a steep premium to other models, especially if it is offered in an extra-large size format. While that is certainly a strong possibility, Chinese brand Hisense has recently announced that it will be releasing its own RGB Mini-LED TV set this month.  What makes that unusual is that Hisense was the first to market with the technology AND at a low-enough initial price that both limits the premium that others might charge and also incorporates it into the largest Mini-LED TV available to retail customers.
We took a quick look at the XXL TV set segment (only sets 100” or larger) to see how the Hisense RGB set pricing compared to other generic XXL Mini-LED sets and here is what we found:

​The Hisense RGB Mini-LED TV is priced (in China) at ~$13,780 US, and we note that it is a 116” model, one inch larger than others on the diagonal (1.64% larger in area), but instead of being offered at a massive premium, like the Samsung Micro-LED 114” model, its price is more comparable to 100” generic Mini-LED backlight models, along with its value on a price- to-area basis.  This will make it more difficult for Sony, Samsung, and others  to introduce their versions at the lofty premiums they might normally use, especially if their sets are smaller than the Hisense model, essentially lowering the price bar before the market has even developed.
Of course, we take into consideration that RGB backlight technology will have a higher cost both in the fact that each backlight ‘pixel’ is comprised of three (RGB) LEDs instead of one, and the driving circuitry for each pixel is now far more complex and costly to produce.  That said, either Hisense has found ways to keep costs low, even during early production, or they are willing to forgo product profitability in order to maintain a share lead over rivals (TCL in China) and in South Korea and Japan.  Sony, Samsung, and LG will now have to find another feature to add to their initial RGB backlight Mini-LED sets when they are released, in order to garner a price premium over Hisense, likely something they were not planning for until recently.