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SI: Sony Hits The Pause Button On A Larger OLED TV

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Christopher

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Sony’s XEL-1 OLED television has always been an oddity; while inherently beautiful and full to the brim of advanced technology, the small size and high cost is tough to chew on for the average consumer. Sony made a huge gamble launching the $2,000+ XEL-1 OLED TV as early as it did, but that is typical Sony style to bring something to the table far before anyone else. With OLED becoming much more prominent in today’s gadgets, it seemed likely that pricing would eventually become reasonable in the next few years and that things were somewhat on track. Sony was expected to release the bigger brother to the XEL-1 in a 20-27 inch model later this year, but the WSJ is now reporting that this move is most likely going to be delayed. It just doesn’t make sense for Sony to mass produce an expensive item that will most likely not penetrate the market in a significant way. WSJ is also speculating that it may give Samsung and LG more time to catch up and release a lower-priced competitor to the XEL-1, which is still the only OLED tv on the market.

Some other interesting quotes from the recent WSJ article about Sony delaying the release of a larger OLED tv:

The decision sends a message to Sony’s engineers that returning its TV business, which is on track to lose money for the sixth straight year, to profitability is a top priority. In the past, Sony’s influential engineers could push the company to roll out products that were technological marvels but struggled to turn a profit.

Research firm DisplaySearch estimates Sony’s production yield for its 11-inch OLED panel is below 60%, meaning at least four of every 10 panels its factories produce aren’t up to par and can’t be sold. Larger panels would likely introduce more difficulties. Sony declined to comment on its production yields.

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