Two weeks ago I suggested that, although Samsung’s top-of-the-line Q9 quantum-dot TV set is likely the best-looking television set on the planet, it may well be substantially overpriced relative to the new Vizio P9 Quantum, which costs $2099 for the 65-inch (and only) version. (Dog Day Reveries)
Samsung’s 65-inch QN65Q9F is selling for $3497.99 from several reputable retailers (as of yesterday), and LG’s OLED65C8PUA 65-Inch OLED TV is selling for $2,996.99.
The Samsung’s image quality is superior to LG’s thanks to its much greater peak luminance. Is it worth $500 more? That depends on whose money you’re spending and your own sensitivities. But at this level, we can assume that consumers are demanding, and that some of those who comparison shop with care and sophistication (and many will not) will find the extra tab worthwhile.
Let’s look at this from another angle. It is likely that LG is making is making only a small margin on the 65″. it is also likely that the Samsung is making a significant margin on the Q9. So LG’s pricing is (I suspect) set by necessity, while Samsung’s is a matter of choice. This is the same game Samsung played last year with its 2017 model Q9, and sales were disappointing.
LG has made priorities of cost and price reduction. They have not yet made significant changes in their manufacturing processes, and are relying on increased volume and better management of their supply chain.
The strategy is paying off. Display Supply Chain Consultants’ (DSCC’s) recent Quarterly OLED Shipment and Fab Utilization Report announced strong growth in OLED-TV units and a 98% Y/Y growth in the area of dispay panels for OLED-TVs. OLED panel sales in H1’18 increased 30% over sales a year before, said DSCC, and there’s more to come. So, we can expect LG to continue to reduce costs and reduce prices for its premium OLED-TVs.
From H1’17 to H1’18, OLED-TV panel sales increased by 98%. (Data and graphic: DSCC)
But, if Samsung’s Q9 is the best-looking TV set, why shouldn’t it command the highest price? For one thing, most consumers do not believe it is the best TV set on the planet. They believe that OLED-TV is the best, which it was for a long time. So, their perception is that they can buy the best (OLED) for less.
But part of this competitive game will be played on a different field. We know the price at which a high-quality, full-matrix, quantum-dot TV can be sold. Vizio is showing us. – Ken Werner
Ken Werner is Principal of Nutmeg Consultants, specializing in the display industry, manufacturing, technology, and applications, including mobile devices, automotive, and television. He consults for attorneys, investment analysts, and companies re-positioning themselves within the display industry or using displays in their products. He is the 2017 recipient of the Society for Information Display’s Lewis and Beatrice Winner Award. You can reach him at [email protected].
