LG reclaims the top spot, but why did BOE fail in the TV panel market?

LG regains its top spot, but why did BOE fall behind in the TV panel market?

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Published: 2022-04-19 18:27 High-quality financial field creator

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When it comes to the changes and development of society today, I think everyone must be able to strongly feel the immense pressure of surviving in society.Both work and family put immense pressure on us, and this is an inevitable trend in social development.

In fact, not only us, but the competition between countries is also more obvious. Whether it is the breakthrough of 5G technology or the comparison of comprehensive national strength, our country has also made certain achievements internationally.As the saying goes, "The higher you stand, the more people chase you."

In addition to Huawei, which we all know, competing with Apple in 5G technology, many other companies are engaged in fierce competition with well-known foreign companies. As we will discuss today, one such company is BOE, an Internet of Things enterprise that provides products and professional services for information interaction and human health –BOE, and its competitive relationship with LG, a South Korean company with high achievements in various fields such as electronics, electrical appliances, chemicals, and energy.

I. LG and BOE

Speaking of BOE, everyone should be familiar with it.As a local enterprise founded in 1993, its Business Scope covers almost all aspects of our lives, such as medical care, finance, education, and art.Their main business is to provide people with more convenient and efficient services and build an Internet of Things platform in the era of rapid development of the Internet.

Its most famous is the Smart IoT business, which is the series of services we enjoy on the Internet every day.It mainly provides innovative applications and services such as TVs and monitors based on display and manufacturing technology.

Data shows that in 2019 alone, it had as many as 9,657 new patent applications, with more than 90% being invention patents, and a total of more than 70,000 usable patents.This is its innovative capacity. In its 2021 annual report, we can also see that its annual revenue has reached 219.31 billion yuan, a year-on-year increase of 61.79%.In 2021, it was also listed on the Brand Finance 2021 Global Brand Value 500, which is a very powerful Internet company.

The South Korean company LG is also not bad. As a high-tech company founded in 1947, its Business Scope covers the fields of chemical energy, electronics and electrical appliances, communications and services.Although it initially only had two fields, electronics and chemicals, as these two fields stabilized in the world, LG gradually expanded its Business Scope.

Today, LG has established more than 300 overseas offices in 171 countries around the world and has nearly 160,000 employees globally,with annual sales reaching US$73 billion, covering multiple fields such as motors, electronics, and trade services.

To say what necessary connection exists between these two large enterprises, I think corporate competition is one of them.Both have their own unique products in the TV panel field, and market share and annual shipments are important links between them.

II. The Competition Between LG and BOE

The competitive relationship between LG and BOE is not a recent phenomenon; the two companies have been competing in the TV panel field for a long time.However, due to LG's longer establishment time and more experience, it has always been firmly in the number one spot in terms of sales. BOE could only temporarily hold the second position.

However, in 2018, BOE's cumulative shipments exceeded LG for the first time, winning the championship.With total shipments of 54.3 million TV panels, it surpassed LG, which had always been at the top, becoming the world's largest supplier of panels for smartphones, computers, and other fields. It is also the world's largest supplier of LCD TVs and monitor panels.

However, BOE's reign as the "panel leader" did not last long, and it was once again overtaken by LG.In the fourth quarter of 2021, according to research data from relevant British media, we can see that BOE's TV panels accounted for only 20.6% of the global market, while LG won with 23.8%, ending BOE's short-lived title of "panel leader."

As for the differences between the two, industry experts believe it lies in the competition between LCD and OLED.LCD is short for liquid crystal display, with advantages such as clear images, thinness, and no radiation, and is an important raw material for the manufacture of TV panel today.

OLED, also known as organic electroluminescent display or organic light-emitting semiconductor, has similar advantages to LCD, such as clear images and no radiation.However, compared to LCD, OLED also has many advantages that LCD does not have, such as self-emission, wide viewing angle, higher contrast, and low power consumption.

Obviously, OLED has more advantages and is more suitable for making TV panels. At the same time, its better performance also means higher costs and more expensive raw materials.The reason why the competition between TV panels today is the competition between LCD and OLED is because the two giants in the production of TV panels are using these two different raw materials.

From the current situation analysis, BOE may be seeking stability and has always been using traditional liquid crystal displays, that is, the LCD we mentioned above.LG has already made a transformation last year and begun developing the better-performing OLED.Many people speculate that the important reason why BOE was able to surpass LG in a short period of time is that LG was in its transformation stage at that time.

However, from a long-term development perspective, it is very likely that OLED will replace LCD, after all, its performance is better.According to publicly available data, in 2021, LG's OLED TV panel sales reached 7.4 million, a year-on-year increase of 65%,This is also an important reason why LG was able to regain its peak.

Although both are currently competing, the main reason is that LCDs offer better value for money and are more affordable.Once OLED technology matures and prices stabilize, traditional LCD television panels will be hard to find on the market.They will all be replaced by OLED television panels with better value and performance.

III. Conclusion

The competition between LG and BOE may last for many years, after all, OLED television panels are a well-known "hot commodity," and no one will be willing to give them up.Although BOE is still using LCD television panels on a large scale, it has not given up on the OLED television panel field, but is pursuing both.Obviously, we don't know who will dominate the television panel field in the future. It all depends on their future development.

From this matter, we can also find that for any industry to achieve success in this field, in addition to its own development path and strategic decisions, the most important thing is innovation.Innovation is also a necessary factor for the development of our times and an important vitality for the long-term prosperity of an enterprise. Only through continuous innovation can we avoid being abandoned by the market.What are your opinions or thoughts on this? Welcome to add in the comments section!

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