In order to stimulate the sales of OLED TV, Samsung announced to cut the price of its 55-inch curved OLED (organic light emitting diode) TVs by 34%. In addition, the increasing market competition and failure in lawsuit lead to divestment of foreign capital, the foreign capital only accounts for 47% of the total Samsung's share.
According to a story in the Korea Times, Samsung has cut the price of a curved 55-inch OLED TV from 15 million won ($14655) to 9.9 million won (around $9672). This price reduction aims to attract more consumers to purchase OLED TV, and then Samsung will occupy the leading position in this market.
Samsung just launched this 55-inch curved OLED TV in South Korea in June, and now the drop in price of 34% cannot help but arouse the attention of the same industry. Samsung said that consumers who purchased the product earlier can get the difference refunded.
But analysts believe that production capacity of OLED TV is limited and the price of OLED TV is more expensive than that of LCD TV, which would be the main factors blocking the market growth. Samsung said that the successful production improvement in recent years contributes to the price cuts.
While both LG and Samsung have released the curved display technology to consumers in Korea, with the technology subsequently released in the US, Australian consumers have been forced to wait for a local release. OLED displays can be made thinner than older LCD displays because they don’t need to be backlit.
“The investment for our first LCD panel plant will be much lower than initially planned because of an unfavorable market situation… But it does not necessarily mean that we are losing interest in the market. We will expand investment again once the market rebounds,” an LG executive said.
With 40-inch and 42-inch display panels dropping in price by 15% in the two weeks to the end of July, Samsung cut production at its display plant in Suzhou from 100000 sheets per month to 40000.
