Will OLED TV Prices Drop in 2023?
The question of whether OLED TV prices will drop in 2023 is one of the most pertinent in the current TV market. As we step into 2023, it's important to consider the factors that will influence the price of OLED TVs and their future outlook.
Current State and Future Projections
2023 is not the right time to buy an OLED TV based on the unprecedented decline in prices that happened in 2022, which saw OLED TVs become more accessible in 2021. However, by 2023, further improvements in production yields and manufacturing efficiencies should contribute to a more affordable market for OLED TVs.
OLED Lifespan and Burn-In Issues
The lifespan and burn-in issues of OLED TVs have seen significant improvements, but they still pose concerns for potential buyers. While some manufacturers have made substantial strides in addressing these issues, there is still room for improvement. These ongoing challenges may impact the price trajectory, as brands continue to invest in research and development to resolve these problems.
Alternatives to OLED
For those looking to save money without sacrificing picture quality, Full Array Dimming (FAD) based TVs are a solid option. These TVs incorporate backlight dimming technology that allows for better contrast and local dimming capabilities, making them a compelling alternative to OLED.
Market Trends and Price Movements
Overall, all TV prices have been falling, with OLED TVs not being an exception. LG's OLED TVs have seen the most significant price drops, offering some of the most accessible price points in their history. However, the price gap between OLED and middle-tier LED TVs remains substantial. LED technologies such as QLED and nanoCell, despite higher performance, offer only slightly smaller price advantages over OLED, making OLED a more cost-effective choice for many consumers.
Supply and Demand Dynamics
TV pricing is highly demand-elastic. If consumers perceive a significant advantage in purchasing OLED TVs, prices are likely to drop. However, the current market does not support this trend, as many consumers are still choosing LED TVs due to their lower performance standards and affordability.
The Role of Micro-LED
As Micro-LED is poised to become the dominant technology for high-end TV displays, there is a chance that OLED TVs could become more affordable in the mid-market segment. If LG Display can improve OLED yields, this could drive a price reduction, making OLED TVs more accessible to a broader audience.
Supply Chain Challenges
The most significant challenge in producing OLED displays is yield. Due to the high density of pixels required in OLED panels, even a small defect can lead to the scrapping of the entire display. This high yield issue is a major barrier to mass production and price reduction.
Despite the ongoing challenges, the outlook for OLED TVs in 2023 is cautiously optimistic, with price drops expected in the coming years as technological improvements and cost-cutting measures take effect.