Sony’s plan on the development of OLED TVs is in a standstill as of now. According to reports, the company will focus its efforts predominantly on 4K LED panels due to its growing demand. Also, there is going to be a 20 percent drop in consumer electronics to meet the demand of 4K sets.
Nikkei, the business news publisher from Japan reported that the commercial development of OLED sets has been put “on ice” by Sony, and the people who were a part of this project will be reassigned other tasks related to 4K products. This decision of Sony comes as they don’t see market for high-contrast displays now and are unsure whether it will be able to beat the worldwide popularity of 4K TVs. The company is therefore now more focused on promoting 4K LCDs to its customers.
The very simple logic behind this move is that the market for 4K sets is performing very well, whereas the expensive OLED TVs have not yet created a mark, according to Nikkei. Moreover, competitors like Samsung and LG electronics have outmaneuvered Sony with their fast and aggressive business strategies pertaining to OLED sets. In fact, last December a report from The Wall Street Journal stated that Panasonic and Sony revoked a partnership venture on OLED production, so that they could concentrate on LCD systems, which involve simpler production comparatively.
The first company to market OLED TVs was Sony. This was way back in 2008, when it launched its 11-inch OLED technology TV with an extravagant price tag of US$2,500. Price is the only problem that has stopped consumers to own an OLED set.
After Sony introduced OLED technology, most manufacturers promised OLED sets, but unfortunately lifespan issues and high production costs have kept the numbers very low in terms of sales in the market.
Color reproduction is the primary value that OLED technology creates in TV sets and displays. The technology took years of efforts to facilitate production at low costs despite the large size. But, even though OLED sets still come with high price tags, the quality is almost three to four folds higher than other TV technologies such as Plasma.
When we consider the 4k television sets specifically, Sony is undoubtedly the industry leader in global market. 20 percent of all the shipments in 2013 were held by Sony, which means 4K sets can actually cover up for the losses of Sony’s television business that the company is suffering from almost a decade.
The company has plans to launch eight models of 4K sets in the upcoming months to boost its sales for this fiscal year and capitalize on its strengths.