As the competition in the LED backlit TV market intensifies, Korean TV giant LG Electronics has introduced two LED backlight products with different types of backlight modules, namely, direct type and edge type; both ran out of stock soon after the launch. LEDinside has recently paid a special visit to Alex Chen, Product Assistant Manager of LG Electronics Taiwan, to discuss the features of LG’s LED-backlit LCD TVs and the development of the market.

The Direct Type LH90 Excels in Picture Quality; the Edge Type SL90 is Thin, Light and Borderless

In July 2009, LG released LH 90 series LED-backlit LCD TVs, which employs direct type LED backlight and features 240Hz TruMotion technology plus full HD 1080p resolution, highlighting its superior image quality. Moreover, the LED backlight technology provides 5,000,000:1 ultra high contrast ratio while the unique local dimming technology not only optimizes both the total picture quality and brightness, but also greatly reduces power consumption by 75%, resulting in more energy-saving, sharper contrast and better color rendering.

As for the borderless SL90 LED TV launched last month, it adopts edge type LED backlight, with 2.9cm in thickness. LGE’s exclusive ICM（Injection-Compression Molding）technology delivers high transmissivity, excellent heat dissipation and produces smoother surface. More compatible with the LCD panel in both color tuning and gradation than ever, the laminate film prevents external interferences such as scratch, light reflection or statics. This is the key technology to realize single-layer single-color design, totally subverting the traditional TV design concept through offering a seamless blend of the screen and the bezel.

Direct type LH90

Direct Type vs Edge Type: Each with Its Own Technological Strength Yet the Edge Type Leads in Sales Due to a 5% Price Gap

Comparing the two types of TVs in terms of their respective LED light source, the direct type with local dimming technology provides high contrast ratio and outstanding picture quality, thought the TV is thicker and priced higher due to more LEDs used. The edge type uses fewer LEDs, which reduces the cost and allows a slimmer and lighter stylish design; however, un-uniform brightness may occur when adopted in large-sized applications. Since both technologies have their respective strengths and target consumers, it is hard to see the winner in the near future.

According to Alex Chen, the price gap between 42” CCFL and LED is 40%, and it is reduced to to 20% for the 55”, so the larger the size, the smaller the price gap. The price gap between direct type and the edge type is maintained at around 5%; take a 42” TV for instance, about 60 USD.

When compared to Sony’s direct type or Samsung’s white light edge type, the greatest advantage LG holds in the LED backlit TV market is that it offers customers the choice between direct type and edge type. As for the response in the market, although the edge type SL90 was only launched three months later than the direct type LH90, their sales ratio in Taiwan is expected to reach 1:1 by year-end. In the global market, the edge type also sells better, showing consumers’ preference for light and thin TVs.

At Least 10 New Products Ranging from 32”-60” to Be Released in 2010 with Global  Shipment Target of 7.5 Million Sets

LG is optimistic about the development of LED backlit LCD TV market in the future. In light of product design, the edge type will no longer focus on lightness and thinness; instead, it will return to consumers’ basic needs, i.e. function first, then quality. As for cost control, unnecessary functions will be taken off to make prices more affordable for the general public, to promote their sales; this also facilitates the extension of its product range, down to 32” and up to 60”.

Alex Chen added that the direct type LED back-lit TV product line will be expanded into two next year while there will be two to three edge type product lines. A combined total of at least 10 new products will be launched altogether, from 32” to 60”, aiming to tap into all consumer markets. It is worth noting that LG is quite confident about the evolution of direct type technology. Improved color-mixing technology and enlarged lighting angle will reduce the LED number used, leading to lower cost and thinner design.

LG global TV sales are estimated at 17 million sets in 2009, including 400 thousand LED backlit TVs. LG’s LCD TV shipment target in 2010 is 25 million sets, with LED backlit TVs accounting for 30% of the total (i.e., around 7,5 million sets), indicating significant growth trend; among them, 150,000 sets is to be sold in Taiwan, (Taiwan’s annual TV sales is 1 million sets). In terms of the LED TV penetration rate, it is about 1% in Taiwan in 2009 and expected to grow to 5-10% in 2010.

Edge type SL90

Thanks to High Replacement Rate, the Penetration Rate of LED Monitors Estimated to Be 20%

Apart from LED backlit TVs, LG also promotes LED backlit monitors. Eddie Chen, Marketing Assis Manager especially shared with us product features and his opinions of the monitor market.

Currently, the boundary between small sized TVs and monitors is blurring. LG makes the division based on features: monitors don’t have built-in speakers and tuners. LG has released 24” LED backlit monitor with 2,000,000:1 high contrast ratio (conventionally 50,000:1), thickness reduced by 2cm, offering both outstanding picture quality and stylish design.

According to Eddie Chen, the price gap between LED and CCFL products is 30 USD for 18.5”, and 120 USD for 24”. Unlike TVs, the monitor price gap widens with the size. Positive about the faster replacement rate of LED backlit monitors than LED backlit TVs, LG will unveil new products in the first quarter of 2010, covering four sizes, 18.5”, 21.5”, 23”, 24. The 1Q10 penetration rate in Taiwan is estimated to reach 5% and expected to climb to 20% by the end of 2010.

Insights from LEDinside

Eco-friendly and energy-saving requirements accelerated the replacement of LED backlight speeds up to replace CCFL backlight as the major light source in medium and large sized panel applications. Various brands have launched a series of LED backlit TVs especially after Samsung successfully tapped into the market with ultra “thin” TV design. LEDinside predicts that the penetration rate of the LED backlit TV will rise to 13% next year from 3% this year and that of the LED backlit monitor to rise to 11% next year from less than 1% this year.

Thin design and cost considerations make the edge type LED backlight design the mainstream, however, the direct type, with its advantageous picture quality, will not be replaced easily. In terms of entry barriers for backlight sources, edge type LED backlight scores a head start, but when high picture quality is emphasized in the future, the direct type LED backlight, capable of local dimming, will be the first choice. According to LEDinside analysts, LG persists in simultaneous of R&D of both types. LG invests heavily in the development of direct type LED backlight market as well as the edge type LED backlight products, striving to offer a diversity of products and to meet different demands from consumers.