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In Pursuit of Product Differentiation: Major TV Brands' Strategies for LED Backlit LCD TVs
November 25, 2008 / Abel Wang / Crystal Chiu
14 Page, Topical Report
US$1,920 (Single User License)

Abstract

LED backlights, with their ultra-slim features, power saving advantages and high dynamic contrast ratios, are currently widely used by TV vendors to develop new high-end LCD TVs. This has created a new round of competition among TV vendors. This report analyses the development of LED backlit LCD TVs and examines international TV vendors' latest product strategies for LED backlight LCD TVs.
  •  Table of Contents
  •  List of Topics
  •  List of Figures
  •  List of Tables

TV Brands Aims to Create More Diversified Value by Using LED Backlight Technology

International brands seem to be in a race to launch LCD TVs with LED backlights. With its competitiveness in color saturation and local dimming technology, LED backlight technology has been adopted by international TV brands to create more diversified value for LCD TV products.

By adopting white LED backlights, Samsung has significantly created new product value for its LCD TVs, which have relatively lower prices, and color performance similar to WCG-CCFL backlights.

Sony uses the white LED edge-lighting technology and scraps the local dimming to develop ultra-slim LCD TV products with a thickness of only 0.99cm. As a result, Sony has widened the body thickness gap between LED and CCFL backlight products.

Sharp and Philips both opt for RGB LED backlights as light source for their LCD TVs. The RGB LED backlight system not only can provide outstanding color and image quality but also can help reduce the body thickness of their LCD TV models. 

As far as consumers are concerned, international TV brands have successfully leveraged LED backlight technology to diversify product value for their LCD TV offerings. These LED backlight offerings have shown their advantages in terms of color performance, contrast ratio, ultra-slim, and power-saving design. TV brands have put one or more of these features into their products.

Besides the CCFL, WCG-CCFL, and RGB-LED backlights, the white LED direct-lighting and white LED edge-lighting systems provide even more options for TV brands to enrich their product offerings and product value.

LCD TV product segmentation is expected to become more sophisticated, covering many price points in the mainstream market segment. In the future, it is anticipated that the competition in the LCD TV market will become more intense.  

TV Brands Have Different LED Backlight Product Strategies

Sony and Samsung both use white LED backlight technology, but they intend to deliver different product value to their consumers. As white LED has color saturation similar to WCG-CCFL, Sony opts for edge-lighting LED backlight instead of LED direct-lighting technology with local dimming technology, in order to achieve 0.99cm-thick products. Samsung, however, focuses on direct-lighting LED backlight with local dimming, which features a 1,000,000:1 dynamic contrast ratio.

In other words, Sony has put its focus on ultra-slim design, while Samsung believes that it can lead the market in terms of contrast ratio.

 

Additionally, Sony debuted 55" and 46" RGB LED backlight LCD TV models. Sony, however, does not produce white LED direct-lighting LCD TVs, indicating that the company prefers flagship models featuring high color saturation (NTSC 122%) local dimming control and high dynamic contrast ratio.

Meanwhile, Samsung white LED direct-lighting LCD TV models have advantages in terms of dynamic contrast ratio and prices. If Samsung hopes to challenge Sony with the technology developed since 2007, the company will have to develop even more new innovative offerings.

Meanwhile, Sharp and Philips have launched RGB LED backlight LCD TVs in 2008 featuring a color saturation of 150% NTSC and ultra-slim design. With its large-sized 52" and 65" LCD TV models, Sharp aims to attract more consumers in the high-end segment hoping to be a technology leader in the market. With its 42" models, Philips aims to continue consolidating its brand loyalty in specific market segments.

TV brands have been adopting different product strategies. However, it remains to be seen which products will be successful in the market.

 


Appendix

Glossary of Terms

LCD TV

 

Liquid Crystal Display Television

LED

 

Light Emitting Diode

WCG

 

Wide Color Gamut

CCFL

 

Cold Cathode Fluorescent Lamp

 


List of Companies

BestBuy

 

 

Philips

 

 

Samsung

 

 

Sharp

 

 

Sony

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