Samsung Electronics Scales Back Micro LED Production and Shifts Focus to Affordable Micro RGB LED Hybrid Technology Due to High Costs and Stagnant Sales
Samsung Electronics has made a dramatic about face on the subject of micro LED display technology. While in the past, the industry, and specifically Samsung, tried to market the hardware as the next step beyond OLED; with brilliant luminosity and no burn in issues; but a staggering price tag precluded widespread consumer appeal. Indications from Samsung's internal processes suggest the company has stopped focusing on its aspiration of the mass market micro LED as a technology, preferring to develop more economical alternatives.
According to a report from ETNews, Samsung has cut production volume of the elite panels significantly and is even outsourcing the process to third parties; where in the past the process was done entirely in house from the panel's fabrication, to the construction of key components. Current operations in this area for the brand are limited only to the final assembly stage; after experiencing stagnant sales figures, and with insiders saying the company sells approximately one hundred devices of the luxury television each year. This is understandable given that they sell at a price point equivalent to a new Mercedes or luxury sedan and are typically on par with the purchase price of an apartment or small home, placing the market for the display out of reach for most of the world.
Despite these moves away from true micro LED displays Samsung will not completely abandon the market. Instead it is expected to move to what is branded as micro RGB LED technology. This hybrid form of technology draws components from micro LED and mini LED but uses RGB backlighting instead of conventional white LEDs; to offer better color quality and contract than conventional screens. This technology still offers premium display performance but is significantly less expensive to produce than true micro LED panels which enables the manufacturer to achieve this price.
While Samsung are scaling back their internal production some competitors in the region continue to experiment. At CES early this year the Chinese manufacturers TCL and Hisense both showcased new micro LED devices, with Hisense stating it was exploring new multi color channels in a pixel to improve saturation. However the experts seem skeptical that the market is near being ready for a mass produced micro LED tv and state that the market is a further 5 years away at least; though hybrid technology will be likely to be seen on displays everywhere.
