 Visitors watch the latest 3D TV released by Samsung Electronics at “Samsung Experience” in New York in this March file photo. / Courtesy of Samsung Electronics |
By Kim Yoo-chul
LOS ANGELES ― Tensions are unexpectedly high between Samsung and LG Electronics in the 3D TV market.
Although each has consistently claimed its own technology has been receiving more attention outside the peninsula with the steady release of new variants, their forays don’t appear to have yielded sizable returns, at least in Los Angeles, one of the largest cities in the United States.
A lack of customized content, higher TV prices and sluggish demand for 3D platforms amid an uncertain recovery in consumer spending are the key hurdles for the Korean pair.
``I’ve noticed what’s going on between Samsung and LG Electronics for 3D televisions, but this fight is out of focus at least for me since consumers are not ready to pay more to buy the sets,’’ said a 45-year-old technician, who identified himself as Jang.
He told The Korea Times that Samsung and LG have increased their brand awareness in some leading U.S. cities, but he thinks it will take more time for them to see profits from 3D TVs.
``The situation has changed. What I mean is that even affluent Koreans in K-Town are reluctant to buy 3D TVs as they don’t see a big difference between conventional sets and the 3D ones,’’ Jang claimed.
Some sales agents at a Best Buy store in West LA said shoppers have a growing interest in 3D televisions, but consumers aren’t embracing the drive for Internet-connected and 3D TV yet.
``I can say there are two things. One is people are paying more attention to 3D TVs, but they are still not materializing as TV manufacturers had anticipated,’’ said a Best Buy agent who identified himself as Paul.
The Minneapolis-based No. 1 consumer electronics retailer reported a 16.5 percent fall in profit for the first quarter of this year from a year earlier. Its CEO blamed economic concerns that kept consumers from spending on value-added electronic products.
`` I want to add that 3D televisions will remain dormant until more content is introduced. The onus is on manufacturers and content creators as we are ready to sell if things get on track,’’ Paul added.
Global TV leader Samsung Electronics plans to sell 10 million 3D TVs. Samsung declined to unveil the portion of its target by market.
Samsung’s cross-town rival LG Electronics also plans to increase the sale of its 3D TVs this year, though it declined to unveil its internal targets.
``Numbers themselves are important, literally, but not as significant as the Koreans will `sell-out’ more to retailers. What matters is to increase the number of `sell-ins’ to general customers,’’ said another Best Buy official in West LA, asking not to be identified.
Must-go-to markets
Despite ongoing controversies and difficulties, the Korean firms are looking at the ``must-go-to’’ markets as they are actively embracing 3D TVs as their next-revenue sources.
With aggressive promotions, campaigns and partnerships with content developers, the two are planning to push their distinctive strategies for 3D TV, according to officials.
``Televisions are becoming commoditized. That means the business has become more vulnerable to economic situations. People won’t buy premium sets without guarantees on creative value, which would pressure them to adopt renewed plans,’’ said the Best Buy official.
Samsung and LG are partnering renowned content makers to offer more 3D choice and shop officials say big promotional campaigns are scheduled for the latter half of the year with Tokyo-based TV giant Sony joining the move.
Analysts and experts say consumers will see more options for 3D sets as top-tier TV makers are ready to apply cash-burning promotions to lead rivals in the lucrative sector.
On the heels of new 3D TV releases from LG and Vizio which uses less expensive film-type patterned retarder (FPR) 3D glasses, Samsung just reduced the price of extra active-shutter glasses to $50, instead of the $129 it previously charged in the U.S.
Wearing special glasses is required to see 3D images, and it makes their price crucial since 3D TVs without glasses won’t be available for a few years, according to experts.
Samsung backs active-shutter technology, along with Sony and Panasonic of Japan, and began selling its 3D TVs in the United States starting with major cities from last month.
Samsung’s 3D TVs topped a survey by About.com, a portal site affiliated with The New York Times, after it received 33 percent of support from netizens, followed by Sony with 31 percent and LG with 6 percent.
LG said its cheaper FPR embedded 3D televisions have just taken off and believes it will add more support from firms such as Philips and Toshiba, as well as Vizio and several leading Chinese TV makers.
``In viewing quality, Samsung is slightly better than LG. However, LG has the edge over Samsung in price. The key point is marketing and affordable content,’’ said Kim Soo-hyun, an analyst at Seoul-based Shinhan Financial Investment.
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