Slow Demand For LCDs Force Panel Makers To Adapt OLED

Samsung and LG are already into the war for supremacy in the realm of OLED televisions, and now the panel makers are also forced to join the race. Reason? As the giants push the new technology into the market, the consumers are fast changing their preferences and although there’s still some section of the market that prefers LCDs over the OLEDs due to the high prices associated with the later that make use of the organic light emitting diode technology, experts predict that the price for OLED TVs will go down pretty soon as mass productions gains speed.
Change of game plan for panel makers?

These new trends in the biosphere of television market has forced the television manufacturers to change their strategy, develop new partnerships, and increase their product line up including the large sized panels that are becoming a rage among the consumers. According to a report published by NPD DisplaySearch, the TV panel makers are now striving to avoid having any over stock of LCD TV panels fearing that they will soon face reduced demand in the market.

Big screen size to rule to market?

Experts predict that large screen sizes will rule the television market and based on the prediction by market analysts, the panel makers are moving to the large sized screens with the hope to bring down the total unit shipments, without hampering the revenue. According to Deborah Yang, the Research Director at DisplaySearch, the consumers are mostly concerned about the television prices, while the brands focus mainly on the TV features. This gap has led to the reduction in the demand and profits for the participants in TV supply chain in 2012.

Panel makers strive to improve their profitability?

The disparity regarding the preferences and panel-sizes between sellers and buyers has resulted in supply restraints. The television brands as well as the panel manufacturers are working towards strengthening their portfolios and improving their bargaining power, so that this can result into more profitability in business, and also help them achieve a competitive edge over others.

As per the forecast made by DisplaySearch, the Samsung and LG, along with the panel makers in China are expected to undertake aggressive shipment plans which will further slow down the demand for LCDs and increase the demand for large sized OLEDs as the prices go down, hopefully by the end of 2013.  


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