Despite the high cost Sony and Toshiba claim that OLED's visual effects are superior, market research firm iSuppli said that due to high prices and manufacturing difficulties, the technology may become a global climate in the next few years.
iSuppli expects global OLED TV shipments to increase from 8,000 in 2007 to 1.2 million units by 2012, and annual sales revenue will increase from less than $1 million to $691 million. However, this only accounts for a very small share of the overall TV market, less than 0.5% of the 242.7 million TV shipments in 2011.
Sony recently announced plans to launch an 11-inch OLED TV in the Japanese market in 2007. Competitor Toshiba responded that it will accelerate the pace of launching 20.8-inch OLED TVs. At present, most of OLED displays are used in the mobile phone market. OLEDs are said to be superior to LCDs and plasma displays in terms of brightness, contrast and color because they do not rely on backlighting. But to enter the mainstream TV market, it is necessary to make OLED screens of 20 inches or larger, which takes more time. Manufacturers are developing processes to mass-produce large screens and build high-efficiency panel production equipment.
Only manufacturers can significantly reduce the cost of OLED TVs, and retail prices can compete with more mature LCD TVs. At present, OLED TVs are twice as expensive as LCDs. Therefore, most consumers will choose competitive technology products with more price advantages.
According to iSuppli, the current TV market is flooded with display types including CRT, LCD, plasma and four types of projector systems. In addition, a variety of innovative technologies emerge in an endless stream, such as SED, FED and so on. Faced with so many choices, iSuppli believes that it is very difficult for OLED TV manufacturers to attract the attention of end product OEMs and channel vendors.
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