I don't think you will see that happening. The writing has been on the wall that OLED would take over a lot of LCD sales as it becomes cheaper. LG should have a 48" TV out sometime this year which likely will be the death nail on high end LCD TV's.
OLED is the 3D of current times. For the rare occasions you actually enjoy that contrast you get to live with the substantial upfront const and the technical downsides, like burn-in. Every generation promises "fo' real this time shouldn't be an issue" and yet every time it is.
3d of current times? You must be high, or have not looked into OLED tv lately. Burn in is a NON ISSUE for home tv watchers. Upfront costs? Every christmas a 55 inch LG tv is like $1200. That is a steal for how long they last and what you get. They sell out almost every christmas.
"That is a steal for how long they last and what you get. "
Isn't that what they said about plasma? and anyway haven't there been LED TeeVee sets for years? of course, they were just LCD panels with LED backlight. have we finally gotten panels with (O)LED pixels? or are we still in backlight age?
We have had TVs with OLED - each pixel generates and emits its own light - for several years now. That is what LG OLED TVs that have been around for 6+ years are. (I'm guessing on how long LG have been making them, as I have a 2016 LG OLED, and it was definitely a few generations into the product line by that time)
This plant closure (it's a sure thing already, of course) is OBVIOUSLY collusion to fix prices and punish hard working, law abiding, totally honest, decent, civilized, American men that exercise daily by lifting beers from end tables to mouths while watching football. Just look at the timing! The NFL World Series is upon is in mere months so they have to drain the supply line to drive up prices in conjunction with a made-up necessity for LG to convert to OLED which doesn't even have anything to do with display panels. I bet the entire Southern Hemisphere got together on this to arrange the plant shutdown just to hurt football fans that are only trying to watch Tiger Woods make the free throw from the finish line and cinch the checkered flag again from the clutches of Hulk Hogan to claim the trophy at this year's spelling bee!!!!!! STUPID SOUTHERN HEMISPHERE! It's those Antarcticans and thieir nefarious plotting to make bowling into America's favorite past time so they can sell us seal skin gloves and shoes! SO TRIGGERED!!
Just envision I've given you a participation ribbon and a cookie for showing up and you'll feel better about your life choices that I've made you question.
About now. It has been a tactic a lot of companies have used in the past when prices start to get to low and they want to raise the profit margin up a bit is to cut the supply of a product just enough to make it so there is less of that product in the sales chain and demand stays the same but because there is not enough product to keep up with supply the prices also go up.
Now I am not saying this is what Samsung is doing here but I thought I would throw my thoughts on this anyway.
In Canada almost every summer we see the big gas companies do things like shut down the gas refinery's for a set period of time saying it is for maintenance and the gas prices raise up because of this and they take for ever to go back down and they never go back down to where they were before. We see it in the memory industry as well where they cut production and the prices rise up because of it. Probably every industry does it to some extent but for most of those we do not even notice it much. I have no problem with companies wanting to make money but if they lie and say one thing and the reason behind it but what they are actually only doing is trying to change the market prices to make it so they can make even more profit I do not agree with that at all.
Come clean and just admit that you want to make more money and the current market prices are to low and getting very close to what it costs to make the product and they need to get the prices a bit higher to stay on the plus side of the profit margin I have no issues with that. I like to make money as well. No tin foil hat here just stating my opinion and again I am not saying this is what Samsung is doing here I actually like Samsung products since all of my TV's and mobile phones are made by Samsung and I like my Samsung products a lot.
Reducing output when there's oversupply is not price fixing, it's just normal business practice, and is announced in advance (e.g. this very article). The drawback is that if other manufacturers do not follow suit, then rather than selling fewer units at higher margins, you are merely selling fewer units.
'Price fixing' is a very specific situation where multiple manufacturers collude to cut supply at the same time, and to control the resultant market share (e.g. to maintain a negotiated split) in order to artificially increase prices, both through undersupply and through artificial market segmentation and noncompetition (e.g. "you leave the TV market but get the whole phone market, and we'll pull out of the phone market and get your share of the TV market").
"Reducing output when there's oversupply is not price fixing"
Well, according to Laffer supply creates its own demand, so vendors should just keep spitting out product and consumers will just take more. That's how he said it works. In such high-capital production like this, Samsung has to find the moolah to pay off the huge fixed cost of the plants. No ship panels, no get money. Regular economists, not just fools like Laffer, council marginal cost pricing in such situations; IOW, any money you get from selling your widgets that's more than the variable (close enough) cost of production defrays amortization of the plant and equipment. IOW, yet again, shutting the plant(s) may well put Samsung in a worse condition overall.
Simple. Focus on higher end or larger displays to let other suppliers take the lower end of the market. It won't improve revenue but at least, won't kill a facility which could be useful in the future.
Samsung's goal of creating a superultraextrememaximumwide monitor that is 12 feet wide and 4 inches high will come to fruition unless we join together to stop them.
American capitalists are pining for the 50s when all they had to do was put up bigger tail fins on that Buick to convince Joe Clueless to trade in. Putting up bigger tail fins didn't demand much change to the production plant, just new dies for the presses. Ah, the days when America Was Great, Again.
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jordanclock - Friday, August 16, 2019 - link
How long until we get a bunch of armchair analysts proclaiming this as part of some sort of price fixing scheme?FreckledTrout - Friday, August 16, 2019 - link
I don't think you will see that happening. The writing has been on the wall that OLED would take over a lot of LCD sales as it becomes cheaper. LG should have a 48" TV out sometime this year which likely will be the death nail on high end LCD TV's.close - Friday, August 16, 2019 - link
OLED is the 3D of current times. For the rare occasions you actually enjoy that contrast you get to live with the substantial upfront const and the technical downsides, like burn-in. Every generation promises "fo' real this time shouldn't be an issue" and yet every time it is.ABR - Friday, August 16, 2019 - link
I had an OLED phone for a few years (before the end of Windows Phone). Never had any problems, and I still miss it.Alistair - Friday, August 16, 2019 - link
you forget, not just contrast, HDR color, per pixel dimming, faster response times etc.imaheadcase - Saturday, August 17, 2019 - link
3d of current times? You must be high, or have not looked into OLED tv lately. Burn in is a NON ISSUE for home tv watchers. Upfront costs? Every christmas a 55 inch LG tv is like $1200. That is a steal for how long they last and what you get. They sell out almost every christmas.FunBunny2 - Saturday, August 17, 2019 - link
"That is a steal for how long they last and what you get. "Isn't that what they said about plasma? and anyway haven't there been LED TeeVee sets for years? of course, they were just LCD panels with LED backlight. have we finally gotten panels with (O)LED pixels? or are we still in backlight age?
jajig - Saturday, August 17, 2019 - link
I still have my Panasonic plasma going strong and looking beautiful.eldakka - Sunday, August 18, 2019 - link
We have had TVs with OLED - each pixel generates and emits its own light - for several years now. That is what LG OLED TVs that have been around for 6+ years are. (I'm guessing on how long LG have been making them, as I have a 2016 LG OLED, and it was definitely a few generations into the product line by that time)PeachNCream - Friday, August 16, 2019 - link
This plant closure (it's a sure thing already, of course) is OBVIOUSLY collusion to fix prices and punish hard working, law abiding, totally honest, decent, civilized, American men that exercise daily by lifting beers from end tables to mouths while watching football. Just look at the timing! The NFL World Series is upon is in mere months so they have to drain the supply line to drive up prices in conjunction with a made-up necessity for LG to convert to OLED which doesn't even have anything to do with display panels. I bet the entire Southern Hemisphere got together on this to arrange the plant shutdown just to hurt football fans that are only trying to watch Tiger Woods make the free throw from the finish line and cinch the checkered flag again from the clutches of Hulk Hogan to claim the trophy at this year's spelling bee!!!!!! STUPID SOUTHERN HEMISPHERE! It's those Antarcticans and thieir nefarious plotting to make bowling into America's favorite past time so they can sell us seal skin gloves and shoes! SO TRIGGERED!!valinor89 - Friday, August 16, 2019 - link
What a world we live in where I can only be 85% sure that the comment from above is sarcastic or a joke after having read it twice.imaheadcase - Saturday, August 17, 2019 - link
If you know PeachNcream most stuff he even believes is also a joke here.PeachNCream - Saturday, August 17, 2019 - link
Just envision I've given you a participation ribbon and a cookie for showing up and you'll feel better about your life choices that I've made you question.rocky12345 - Friday, August 16, 2019 - link
About now. It has been a tactic a lot of companies have used in the past when prices start to get to low and they want to raise the profit margin up a bit is to cut the supply of a product just enough to make it so there is less of that product in the sales chain and demand stays the same but because there is not enough product to keep up with supply the prices also go up.Now I am not saying this is what Samsung is doing here but I thought I would throw my thoughts on this anyway.
In Canada almost every summer we see the big gas companies do things like shut down the gas refinery's for a set period of time saying it is for maintenance and the gas prices raise up because of this and they take for ever to go back down and they never go back down to where they were before. We see it in the memory industry as well where they cut production and the prices rise up because of it. Probably every industry does it to some extent but for most of those we do not even notice it much. I have no problem with companies wanting to make money but if they lie and say one thing and the reason behind it but what they are actually only doing is trying to change the market prices to make it so they can make even more profit I do not agree with that at all.
Come clean and just admit that you want to make more money and the current market prices are to low and getting very close to what it costs to make the product and they need to get the prices a bit higher to stay on the plus side of the profit margin I have no issues with that. I like to make money as well. No tin foil hat here just stating my opinion and again I am not saying this is what Samsung is doing here I actually like Samsung products since all of my TV's and mobile phones are made by Samsung and I like my Samsung products a lot.
edzieba - Friday, August 16, 2019 - link
Reducing output when there's oversupply is not price fixing, it's just normal business practice, and is announced in advance (e.g. this very article). The drawback is that if other manufacturers do not follow suit, then rather than selling fewer units at higher margins, you are merely selling fewer units.'Price fixing' is a very specific situation where multiple manufacturers collude to cut supply at the same time, and to control the resultant market share (e.g. to maintain a negotiated split) in order to artificially increase prices, both through undersupply and through artificial market segmentation and noncompetition (e.g. "you leave the TV market but get the whole phone market, and we'll pull out of the phone market and get your share of the TV market").
t.s - Saturday, August 17, 2019 - link
The things is, other manufacturers following suit (start with wink-wink or emails exchanges). And that, my friend, is price fixing.FunBunny2 - Saturday, August 17, 2019 - link
"Reducing output when there's oversupply is not price fixing"Well, according to Laffer supply creates its own demand, so vendors should just keep spitting out product and consumers will just take more. That's how he said it works. In such high-capital production like this, Samsung has to find the moolah to pay off the huge fixed cost of the plants. No ship panels, no get money. Regular economists, not just fools like Laffer, council marginal cost pricing in such situations; IOW, any money you get from selling your widgets that's more than the variable (close enough) cost of production defrays amortization of the plant and equipment. IOW, yet again, shutting the plant(s) may well put Samsung in a worse condition overall.
Beaver M. - Sunday, August 18, 2019 - link
After we saw the same shit on RAM and HDDs, its very healthy to be critical. You obviously arent.shabby - Friday, August 16, 2019 - link
I hope they made too many 80"+ panels too...zodiacfml - Friday, August 16, 2019 - link
Simple. Focus on higher end or larger displays to let other suppliers take the lower end of the market. It won't improve revenue but at least, won't kill a facility which could be useful in the future.viivo - Saturday, August 17, 2019 - link
Samsung's goal of creating a superultraextrememaximumwide monitor that is 12 feet wide and 4 inches high will come to fruition unless we join together to stop them.StrangerGuy - Saturday, August 17, 2019 - link
It's the same story with every other consumer gadget: People are buying less because what they already have is good enough.FunBunny2 - Saturday, August 17, 2019 - link
"what they already have is good enough. "American capitalists are pining for the 50s when all they had to do was put up bigger tail fins on that Buick to convince Joe Clueless to trade in. Putting up bigger tail fins didn't demand much change to the production plant, just new dies for the presses. Ah, the days when America Was Great, Again.