Date: 10/10/2012

4K TVs may act as transitional step to AMOLED TVs; low consumer demand to 4K: HIS

In spite of some high-profile product releases, consumer demand for televisions with the ultra-high-definition 4K resolution is to remain insignificant for the probable future, with shipments never accounting for more than 1 percent of the worldwide liquid crystal display (LCD) TV market during the next five years.

IHS iSuppli Television Market Tracker report quotes that the worldwide shipments of 4K LCD-TVs is to rise to 2.1 million units in 2017, up from 4,000 in 2012, Despite the large increase over the years, 4K is to account for only 0.8 percent of the global LCD-TV shipments by 2017, as presented in the figure below. The sets are known as 4K because the televisions sport a pixel format of 3,840 by 2,160—four times that of a usual high-definition set at 1,920 by 1,080 pixels.
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The 4K television segment recently has garnered attention with Japanese manufacturer Sony Corp. announcing an 84-inch 4K LCD-TV priced at $25,000. LG Electronics of South Korea also launched an 84-inch LCD-TV for $20,000. Japan’s Toshiba Corp. is offering a 55-inch model priced at $10,000.

For their part, Chinese brands Hisense and Konka announced that they will launch 84-inch 4K sets this year.

However, IHS thinks that neither consumers nor television brands have the interest required to make the 4 K LCD-TV market successful.

“If you have a television that is 60-inches or larger and are watching video that has a 3,840 by 2,160 resolution, then a 4K television makes sense,” said Tom Morrod, director, TV systems and technology research for IHS. “However, a very limited amount of content is available at the 4K resolution. Meanwhile, because of high prices and other issues, the market for super-sized, 60-inch and larger sets is very small—at only about 1.5 percent of total television shipments in 2012. Furthermore, for most people, the 1,080p resolution is good enough. Because of these factors, combined with the massive price tags, the market for 4K sets during the next few years will be limited to very wealthy consumers or to commercial uses.”

On the road to OLED:
On the other side of the equation, leading television brands may be viewing 4K just as a transitional product.

“The 4K sets can fill the gap at the high-end of television brands’ product lines until the arrival of the next-generation active-matrix organic light-emitting diodes televisions (AMOLED TVs),” Morrod said. “Japanese brands are offering 4K product because they need to have a competitive alternative to the AMOLED TVs being sold by their rivals in South Korea, Samsung and LG Electronics. Meanwhile, the South Korean companies are having difficulties producing AMOLED panels, saying they will need two more years to achieve competitive volume and pricing. Therefore, the Korean brands are offering 4K sets as a transitional step until their AMOLED televisions are more widely available

Source: IHS