Taiwan to take 4KTV lead in 2014

Joseph O'Halloran | 28-02-2014

Taiwanese display panel makers Innolux and AUO are set to lead worldwide 4KTV panel shipments in 2014 according to data from NPD DisplaySearch.

The analyst’s Quarterly LCD TV Value Chain & Insight Report predicts that the two companies will generate a combined market share of 58%, more than double that of Korean manufacturers Samsung Display and LG Display (25%) and Chinese manufacturers ChinaStar and BOE who are calculated to take 14%.

NPD DisplaySearch believes that the discrepancies in shares reflect very different strategic outlooks by the countries’ manufacturers, in particular those from China. That is, the analyst says, that Chinese brands are aiming to sell 4KTVs at a small premium in their domestic market, while global brands want to maximise image quality which will be a key buying point for UltraHD services. It adds that some panel makers are promoting reduced-specification 4KTV panels to lower cost and increase shipment volume and cautions that this strategy might not fit well with top brands aiming to position 4KTV as a high-end segment sold at premium prices.

“The 4K display demand from their related TV brands is critical to the ability of Samsung Display and LG Display to compete effectively within the growing 4K TV market,” said Deborah Yang, research director for monitors and TV for DisplaySearch.

“The ability of the Korean panel makers to expand 4K panel production is dependent on their success in securing more 4K display clients, beyond satisfying the needs of their own 4KTV brands. The rise of the 4KTV market is mainly driven by the supply side, while leading TV brands are concerned about the value proposition of 4KTVs. While some TV brands are considering increasing their 4KTV shipment targets, we continue to see a mismatch between 4KTV panel supply plans and consumer purchasing expectations.”