OLED is not popular, Samsung and LG turn to quantum dot TV

According to Reuters, since OLED (organic light-emitting diode) is still many years away from mass market popularity, Samsung Electronics and LG Electronics have turned to quantum dot technology. This new technology combines a thin film composed of tiny light-emitting crystals with ordinary liquid crystal televisions (LCD), which is relatively straightforward to manufacture and can improve picture quality at a cheaper cost.

Low prices could help the technology catch on quickly, with one industry analyst estimating that a 55-inch quantum dot TV is 30-35% cheaper than current LCD TVs and 80% cheaper than OLED TVs. LG recently launched a 65-inch ultra-high-definition OLED TV, which costs 12 million won (about $11,350) in South Korea. The only challenge with this technology is that there are only a few suppliers, including Quantum Materials and Nanoco, and it is difficult to secure enough quantum dot materials.

Nanoco said last month that a plant built by partner Dow Chemical in South Korea will start producing quantum dot materials in the first half of 2015. Analysts believe that the production will only be enough for local customers. On Wednesday, LG, the world's second-largest TV manufacturer, said it plans to produce quantum dot TVs in addition to OLED TVs. Analysts believe this is tantamount to admitting that OLED needs more time to reduce costs.

"We have a dual-track strategy of quantum dots and OLED," LG Chief Financial Officer Jung Do-hyun said on a conference call with analysts. He said OLED is fundamentally a better product. Samsung Vice President Simon Sung told analysts on Thursday that quantum dots are one of the technologies the company is considering. "To enter the mainstream market, whether the technology meets the market conditions is a key consideration, and we will actively respond to such opportunities," he said.

Currently, Japan's Sony Corp. is the only major company selling quantum dot TVs. China's TCL Multimedia Technology Holdings Ltd. also showed off a quantum dot TV at the IFA tech fair in Berlin last month. LG and its LG Display unit are the largest makers of OLED TVs, while Samsung has yet to release an OLED model this year. Analysts say the lack of Samsung support could limit OLED's prospects and keep prices high.

CIMB analyst Lee Do-hoon said: "OLED should be cheaper than LCD in theory because it does not need a backlight, but the scale and output of the product are low at present. LG needs a transitional product and it seems to be saying it will see the market conditions and respond with quantum dot technology." Samsung may be more aggressive than LG in quantum dots because LG risks jeopardizing its OLED business.

Lee Do-hoon said: "If LG focuses on quantum dots, it basically means that OLED will hardly become mainstream in the near future." Researcher DisplaySearch predicts that quantum dot TVs will be shipped to 1.95 million units next year, accounting for 0.8% of the total market, and will grow to 25.5 million units by 2020. IHS Technology predicts that OLED TV shipments will grow from 600,000 units in 2015 to 7.8 million units in 2019.

Some analysts believe that the emergence of cheap LCD TVs may curb the success of quantum dot TVs. Greg Roh, an analyst at HMC Investment, said: "LCD is still the mainstream, so I don't know how important quantum dot TVs are. I think it has no other significance, just strengthening the LCD product line."

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.