S. Korea TV firms pass rivals in Japan with OLED models

Samsung Electronics Co. and LG Electronics Inc., the world’s two biggest TV makers, want to widen their lead over Japanese rivals by using new display technology in 55inch sets thinner than Apple Inc.’s ipad.

The South Korean companies are developing organic light-emitting diode, or OLED, televisions that are as thin as 4 millimeters (0.16 inches) and produce images 200 times sharper than current liquid-crystal-display models. Both plan to start selling OLED sets as early as this year, while Sony Corp. and Panasonic Corp. haven’t set target dates for introducing them.

Samsung and LG are turning to OLED technology to extend the advantage they gained during the transition from analog to digital TVS. Having been slower in ditching bulky sets and now stuck with growing losses, Sony and Panasonic are again lagging behind as the OLED market may be the fastest-growing in the $100 billion industry during the next three years.

“OLED TVS could be another game-changer,” said Hyun Park, a Seoul, South Korea-based analyst at Tong Yang Securities Inc. “The Korean companies are leading the initial development stage. Sony and Japanese companies aren’t really responding.”

Shipments of OLED TVS may grow to 2.1 million sets in 2015 from 34,000 in 2012, according to Englewood, Colo.based IHS Inc.’s isuppli.

Using organically glowing materials, OLED TVS don’t require separate backlights and can be half the thickness of Apple’s ipad 2. The technology, already used in mobile devices including Samsung’s Galaxy smart phones, uses less power than LCD and has a higher contrast rate, creating more vivid images.

Suwon, South Korea-based Samsung and Seoul-based LG showed 55-inch sets at the Consumer Electronics Show in Las Vegas in January. LG’S prototype was 4 millimeters thick, while Samsung declined to discuss dimensions. Both sets have 3-D and Internet capabilities.

The two companies employ different technologies. Samsung uses red, green and blue OLED materials inside individual pixels to create images, while LG uses white light and an extra color filter.

Samsung’s method can be more energy-efficient and show a broader range of colors, said Paul Semenza, senior vice president of analyst services at Santa Clara, Calif.-based Displaysearch. The technology requires greater accuracy and consistency, making manufacturing harder than LG’S approach, he said.

The downside of LG’S technology is higher power consumption to keep the white layer bright, Semenza said. Google Inc. created a search application with a black background for mobile phones using OLED technology.

Ha Joon Doo, an analyst at Shinhan Investment Corp. in Seoul who saw both technologies at the Las Vegas show, said the OLED sets showed colors better than comparable LCD models. It was difficult to distinguish between the two prototypes, Ha said.

“OLED TVS had a bit of more comfortable and natural feel to colors,” he said.

Japanese manufacturers probably won’t enter the OLED market until after 2013, said Alvin Lim, an associate director at Fitch Ratings in Seoul.