The Evolution of LED TV Market – Survival of the Fittest (2)
Toshiba
Toshiba Regza also joined the LED TV battlefield by promoting its SV670 series. Although Toshiba only offers two different sizes (46W and 55W), both are equipped with impressive features – since these models adopt direct-type light source, Toshiba boasts its Local Dimming function in the "Focal Light". In addition, combined with the most advanced 240Hz refresh rate and 10 bit panel, and Toshiba’s cutting edge image processing technology, this TV set includes all the basic functions required for an LCD TV.
Price-wise, the most high-end 55W model is priced under $3,000, in line with that of LG’s LH series – this price strategy hits the market at core, offering consumers high performance at a reasonable price, in an attempt to gain market share from existing market leader, Samsung. If Toshiba offers vertical product extension, namely 40W/42W models, the full range of product offering should help the company achieve pleasing sales performance.
Sharp
Sharp witnessed the same fate as Sony: both are founding brands of LED TV, and both were unsuccessful in their introduction for the same reason – the high cost of using RGB direct-type LED backlight. Although the XS1 series, with RGB LED is still available on the market, the product is reaching the decline phase as its price is still too high for widespread acceptance.
In the new generation of LED TVs, Sharp adopts drastically different strategies both in the price and specifications. In the recently launched LE series, Sharp introduced a full-range of sizes, offering models from 32W to 52W; among them, the 32W is priced at $999, the first LED TV in the market that is priced below $1,000. Although Sharp also adopted the direct-type light source, this new definition of "Ultra Brilliant LED System" includes no mention of any Local Dimming features in any of its catalogues.
Furthermore, even though the LE series adopts Sharp’s own X-Gen LCD panel, the full range is only equipped with 120Hz refresh rate; therefore, without the Local Dimming feature in its direct-type light source, it seems to lose the a crucial selling point against LG and Toshiba’s models.
Vizio
Although the new rising star Vizio has not had extensive experience in the TV market, its outstanding features and affordable prices posted excellent sales performance in the U.S. Of all LED TV brand vendors, Vizio is the most aggressive non-top-tier brand, and has launched the VF series.
Although the VF series is only available in 55W, but with direct-type light source, Local Dimming control in 80 blocks, and a 240Hz panel, the specifications have surpassed that of the mainstream models. With an incredibly low price of $2,199, which virtually matches the price range of first-tier 55W CCFL models, Vizio once again demonstrated its ambition of dominating 50% of the LED TV market by 2010.
Judging from competition and cooperation, Vizio’s current LED TV panels are supplied by LG Group’s LG Display, this indicates that LG’s LED TV products are available across different segments including direct-type, edge-type, high-end, and the affordable entry-level models – such diversity of product offering is unprecedented in the market.
Conclusion
It has been almost half a year since the initial launch of Samsung’s LED TV, with more aggressive competition in the market led by the increasing number of market entrants, we project that sales in the hot season will see higher discount and more promotional activities for LED TV related products. From a broader perspective, this will certainly boost consumers’ acceptance of LED TV.
As to whether edge-type or direct-type will be the mainstream model in the LED TV market – in view of current market dynamics, edge-type products use relatively fewer LEDs, therefore its low cost helps to narrow the price gap with the CCFL backlit LCD TV, making it easier on consumers’ wallets when they find the products that appeal to them. In addition, Samsung has successfully formed the connection of edge-type LED TV with ‘energy-efficiency’ and ‘ultra-slim profile,’ making these attributes part of the crucial features when consumers evaluate their new TV purchase. Based on the aforementioned factors, it is projected that edge-type LED TVs will be more popular in 2010.
That said, direct-type products are not entirely ruled out of the market, after all, its state-of-art Local Dimming function has greatly improved the issue of low contrast, the most challenging issue related to LCD TVs. The drawback in the short-run – the high cost and heat dissipation problem are like Achilles’ heel for direct-type LED TVs; nonetheless, with enhancement in LED luminous efficiency as well as price cut of backlight related components, WitsView forecasts that beginning as of year 2011, when the cost structure of direct-type products is optimized, these products will begin to blossom and compete with edge-type products in the LED TV arena.
