SEOUL – Samsung Electronics Firms Co. and LG Electronics Inc. both plan to stay ahead of their competition with help from OLED (Organic Light Emitting Diode) technology. Neither of the two companies were discouraged by the fact that their three-dimensional television models or internet-connection capable TVs failed to boost sales.
The South Korean TV manufacturers invested billions of dollars in the development of new technologies to produce thinner screens and surprising image definition.
The companies decided to embark on this costly effort in hopes that latest innovations would somehow hold the interest of consumers that are more focused on purchasing the latest smartphones and tablet PCs.
The TV industry is intensely competitive but even Sony has reported losses in the last eight years.
15 years ago, the advent of flat screen televisions was considered a breakthrough in the technology sector. It captivated consumers pretty much the same way as color televisions did in the late 1960′s.
The first generation of flat screens now seem bulky compared to newer TVs which have ultra-thin screens. The image quality has also improved greatly since the first flat screen TVs came out.
However, the interest of consumers in the advances of televisions has dwindled greatly. After all, why pay for a TV with crystal clear image if your current set is already good enough? Why pay more for a TV if smartphones and tablet computers offer similar functionalities?
When the Lee Sang-hyun, 30, decided to buy his first television, his main interest was a reasonably priced set that had a big enough screen for playing video games. His budget was limited because they recently invested in an iPhone and a laptop. In order to save, Lee chose a 42-inch plasma TV . He paid 640.000 won ($550USD), less than half of the price tag on the most modern TVs today.
Consumers like Lee embody the challenges being faced by high-end TV manufacturers today.
There has been a big change in the buying habits of consumers when it comes to home entertainment systems. These days, people spend less time watching live news broadcasts in their living room. Instead, they use their smartphones and tablet computers to live stream news programs and movies through the internet.