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With the withdrawal of the last adherent, the fate of plasma TV has come to an end, and the OLED, which is called the next-generation display technology by the industry, seems to be difficult to become a climate in the short term. LCD is still the king of the color TV market.
Plasma is drifting away
Recently, Sichuan Changhong issued a notice saying that the company intends to transfer 61.48% stake in Sichuan Hongou Display Device Co., Ltd. to Mianyang Dakun Investment Co., Ltd. by way of agreement transfer, the transaction price is 64.20 million yuan, and Sichuan Hongou is Changhong is the main company responsible for the plasma TV business.
In response to the transfer of the equity, Sichuan Changhong said that in recent years, the plasma industry environment has undergone major changes, the market scale has been shrinking, the supply chain resources of the front-end supporting supply are in short supply, and the cost of plasma screens and module products has risen, causing the loss of Hongou Company to be serious. The transfer of equity will divest the plasma business and assets to further enhance the company's profitability.
Changhong has high hopes for the plasma business. In 2006, Changhong began to launch the plasma panel production line, with a total planned investment of more than 2 billion US dollars. In 2008, Changhong increased its holding of 1 billion yuan to become the controlling shareholder of Hongou, and continuously invested in and built plasma screen and module projects. However, such a large investment did not bring a corresponding return to Changhong, but it was a huge drag on its performance. Sichuan Changhong's financial report for two consecutive years showed that Hongou showed a loss of 738 million yuan in 2012 and a loss of 347 million yuan in 2013. In the first half of this year, Sichuan Changhong lost an overall loss of 181 million yuan, of which Hongou showed a loss of 130 million yuan.
In fact, in the plasma camp, Changhong is the last leaver. Prior to this, South Korea's Samsung and LG have confirmed to the outside world that they will stop the production of plasma TVs and plasma panels, and the time node for their production suspension is the end of last month.
In contrast, Japanese companies that first spawned plasma technology exited the plasma TV industry early. In 2005, Toshiba announced the suspension of plasma TV research and development. In 2006, Sony announced the withdrawal of plasma TV. In 2007, Fujitsu announced the discontinuation of plasma TV. In 2008, Pioneer said that it stopped production of plasma TV. In 2013, the plasma TV industry leader Panasonic finally chose to exit the plasma. TV.
The successive withdrawal of these companies was mainly due to the industry downturn. According to data from third-party market research organizations, from January to August 2014, plasma TV market share in the color TV market was only 1.32%. Industry insiders predict that plasma TV will completely withdraw from the civilian market in the next 3-5 years.
OLED is far from climate
Plasma TVs will gradually fade out of the market, who will challenge the dominance of LCD TVs? The answer given by the industry is OLED (Organic Light Emitting Diode).
As a revolutionary display technology, OLED provides picture quality that not only surpasses traditional LED TVs, but even rivals plasma TVs that were known for their quality. The exit of plasma TV is undoubtedly good news for OLED TV.
However, from the perspective of market performance, OLED is still far from forming a climate. IHS, a world-famous consulting firm, recently analyzed in a report that by 2019, the annual global shipment of OLED TVs may be difficult to exceed 9.1 million units. The agency predicts that during this period, the total global TV shipments will be 200 million. Between 56 million units and 247.10 million units. The monitoring data released by Orviet Consulting, a domestic consulting firm, also showed that the annual sales of OLEDs in 2014 was 30,000 units.
Dong Min, general manager of Aowei Consulting's Black Power Division, said that OLED is subject to factors such as key technologies, low cost and low yield. The large-scale application of panels and large-scale industrialization still have a longer period of at least three years. In the short term, OLED is not a substitute for LCD TVs.
What is more noteworthy is that many Japanese and Korean companies that promoted OLEDs in the past were stuck in the promotion of OLEDs in 2014, and some companies even suspended OLED projects.
Japanese companies are the birthplace of OLED technology. As early as 2012, Sony and Panasonic, two major Japanese TV brands, announced the establishment of an OLED TV alliance to share their OLED-related technologies. However, there are reports that Matsushita plans to achieve mass production of OLED panels in fiscal 2015, but plans are now postponed until fiscal 2016 or later. Sony also announced the freezing of OLED TV research and development, shifting the focus to 4K.
In South Korea, the world's two major color TV giants in addition to LG continue to stick to OLED, Samsung has also explicitly suspended plans for OLED.
There is news that Samsung and LG are planning to apply quantum dot technology to next-generation TV products. Analysts said that unlike Samsung, which did not fully focus on OLEDs, LG has been active on OLEDs. "If LG pays attention to quantum dot technology, this is equivalent to sending a signal to the outside world, that is, OLED TVs are hard to be popular in the mass market in the near future."
Technology is not the only factor in winning the market
In the eyes of the industry, the exit of plasma is quite regrettable. As a milestone in the color TV industry, both plasma and liquid crystal have their own advantages and disadvantages. In fact, until 2006, regardless of the quality or price, plasma TVs still have a competitive advantage. Therefore, in the past few years, the industry has spread the saying that "the layman looks at the LCD and looks at the plasma."
However, good technology has never been a necessary and sufficient condition for determining the outcome of a market. Absolute technical advantages have not brought much benefit to plasma TVs. On the contrary, the plasma alliance led by Japanese manufacturers such as Matsushita has faltered and missed the opportunity of development.
In the early days of plasma development, Panasonic, Samsung, LG, Hitachi, Pioneer and other manufacturers firmly controlled the technological advantages and upstream plasma panel manufacturing resources, and in order to obtain higher profits, they did not open the entire industrial chain to other manufacturers.
In this regard, Hongshi Bin, executive director of the Marketing Committee of China Household Appliances Business Association, said that it is the solid support of the plasma camp that gave the LCD camp a chance to catch up. The Panasonic-based plasma camp adopted a conservative strategy in the development process, which made the industry no followers, while the LCD industry is relatively open and technology sharing, making the whole industry more and more powerful.
Interestingly, the current situation of OLEDs is very similar to plasma. Currently, LG is the absolute leader in the OLED TV market, and its global communications leader Ken Hong said that LG is leading other manufacturers in OLED manufacturing technology for at least ten years.
"Other companies have suspended the development of OLED technology, mainly because their income in this area looks very poor." Ken Hong claims that LG currently has 80% of the OLED market.
However, in the industry's view, OLED is undoubtedly an advanced technology only from a technical point of view, but only one company can not fundamentally promote the development of OLED, plasma is a good example.
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