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Ultra high-def TVs still too expensive

Lucas Mearian | July 24, 2014
The price of a 55-in. UHD TV is expected to be around US$1,850 by 2017

Ultra high-definition televisions (UHD TVs) have gained little ground in the flat-panel market because prices remain too high, according to a new report from IHS Technology.

Among the top 13 LCD display brands worldwide, the share of UHD TV shipments reached just 5% in May, up from 4% in April, 3% in March and 2% in February, according to IHS.

While UHD TV share has grown by 1 percentage point for each of the last three months, growth hasn't budged much since September, when the market was already at the 2% level.

The top 13 UHD TV brands account for more than 75% of total LCD TV shipments and represent more than 90% of overall UHD LCD TV shipments.

UHD TV shipments this year are projected to grow to 14.5 million units, up from just 2 million in 2013, as global brands deploy aggressive marketing efforts and roll out new models, according to IHS.

Flat-panel televisions overall amounted to 18.1 million units in May, down 6.4% from April but up 7% from the same time a year ago. Of the total, LCD TVs -- including UHD sets - accounted for 17.4 million units, with plasma TVs making up the remainder at 708,000 units.

IHS Technology
UHD TV shipments have risen to 14.5 million units, up from 2 million in 2013, but they still only represent 5% of the LCD display market (Source: IHS Technology).

"Growth in this year's global UHD TV market is a reflection of plans among TV makers, especially the Chinese, to increase sales. And expansion in UHD TV volume is mostly scheduled for the second half this year," Jusy Hong, an IHS principal analyst for consumer devices, said in a statement.

UHD TVs have much higher resolution than conventional HD sets, but the dazzling images come at a steep trade-off: their prices can be several times those of LCD TVs.

According to the Consumer Electronics Association, which hosts the CES conference, buyers still pay north of $50,000 for a 105-in. UHD-TV, while the average price for a 55-in. UHD-TV this year will be around $2,750. By 2017, that price is expected to drop to $1,850.

That compares to 1080p high-definition TVs (HDTVs) today that run anywhere from $700 to around $1,700 for a 55-in. model.

"In China, for instance, the share of UHD TVs continues to stay below 10% despite vigorous promotion by brands because high UHD-TV pricing acts as a barrier for wider acceptance," Hong said.

That observation, while true of China, the world's biggest TV market, can also be extended to the largest UHD TV markets worldwide, Hong added.

 

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