Samsung to face challenges in making up for plasma exit
After the CE giant revealed that it is to halt production of plasma displays in November 2014, Samsung will be hard pressed to replace the business line with LCD replacements, according to a research note from NPD Display Search.
Samsung's move was in keeping with similar strategic action by rivals Panasonic, Sony, Hitachi and Pioneer but, said DisplaySearch Korean FPD market and technology research senior manager Ken Park, demand for PDP TVs demand was 'not bad' in the first quarter of 2014, coming in at just under two million units globally, higher than forecast, with 'exceptional' year-on-year growth of 164% in Latin America. Moreover, Park calculated that the technology was on a steep downward trajectory — from 10.3 million units in 2013 to 5.2 million by the end of 2014, and plummeting to half a million in 2015 — while PDP screens actually increased their share of the market from 5-10% over the past 12 months.
Park also noted that Samsung's Latin America PDP shipments grew faster than respective LCD shipments, and cautioned that the company would need to make up for a potential loss in market share.
"In order to capture the demand for the lower-priced PDP TVs, Samsung will likely develop price-competitive LCD TV designs. Our supply chain research indicates that new 40" HD, 48" HD, and 58" FHD LCD TV models will be ready in the next few months, and we expect them to address this challenge," he added. "While the general market appears to be driven more by pricing than display technology, Samsung will still need to manage the transition from PDP to LCD TV in order to avoid a big loss in market share. Panasonic has not been able to replace its loss of market share with LCD as it exited PDP ... although it was much more dependent on PDP and not a leading brand in LCD TV as Samsung and LGE are."