Chapter 1200 – LCD vs. Plasma
Many consumers in the market prefer power and s.p.a.ce-saving, a flat-screen TV and PC monitors now. That’s why plasma technology is developing very fast.
But there is another type of flat-screen TV that is clearer than plasma TVs, especially when looking at the screen from an angle. Also, the contrast and grayscale of this TV are much better.
Philips TV manufacturing business is one of their main business, and Feng Yu had entered this industry after exchanging shares with Chang Hong. Chang Hong is focusing on producing PC LCD monitors as the profits are higher.
Chang Hong is China’s first company to start researching plasma technologies. Philips is also working hard to develop it. Currently, the j.a.panese companies are the strongest in plasma technologies.
For example, Pioneer, Panasonic, Hitachi, etc., followed by Korea’s Samsung, LG, etc., are developing both Plasma and LCD technologies simultaneously. Their technologies are not the best and are around the same standard. Sony, Toshiba, and some Taiwanese companies are on the third tier.
After these companies are Thomson, Philips, Chang Hong, TCL, and other companies. As for the US, they are selling Asia and European models.
The current plasma technologies are better than LCD and are more suitable to be used on TV. Also, plasma TV is more comfortable to the eyes compared to LCD.
But there are several major weaknesses to plasma TVs.
First, plasma TV can only be bigger and not smaller. The smallest is at least 40 inches! This prevents those plasma TV companies from using this technology on PC monitors. Only a handful of people will use such big monitors.
This is because it is too big and it’s uncomfortable for PC users.
Secondly, plasma technology is better at processing moving images. But when it comes to still images, it is not as good as LCD. It is currently around the same standard as LCD in still image resolutions, but LCD will soon overtake Plasma.
If the screen showed a still image for a long time on the plasma TV, it would burn the screen and leave a marking. That means when watching DVDs on plasma TVs, one cannot pause it for long. Plasma is using electricity to power up the gases inside, and it will heat up after long periods. While LCD is using electricity to change the liquid crystal structure, and it is more stable.
That’s why after you had switched off the plasma TV, you will notice the image will remain still on the screen for a while.
LCD display uses stable electricity while plasma TV will adjust the brightness and colors based on surrounding brightness. That means plasma TV is not using the same amount of electricity all the time.
Most importantly, Panasonic and many companies had monopolized the high-end plasma screens to maintain their lead in this technology. This will affect the supply chain, and they did this to get higher profits.
Currently, plasma TVs are more expensive than LCD TVs, and the profits are higher.
Philips and Thompson are Europe’s top TV manufacturers. They are facing the dilemma of focusing on Plasma, LCD, or both.
Philips and Wind and Rain electronics had developed the most advanced LCD technology globally and have several production plants around China and Europe. They will not give up on LCD as this technology is not only used in TV. It can be used in PC monitors too.
But Thompson felt Plasma TVs have more advantages and should be the first choice for flat-screen TVs. This is separating flat-screen TVs into two factions.
South Korean companies are treading on both sides and will not make high profits!
In Feng Yu’s previous life, Thompson is one of the supporters of plasma TVs. When the profits of plasma TVs dropped, they suffered losses and finally collapsed in the 2008 financial crisis.
Feng Yu does not want to lose his partner, Philips. Without them, he will lose the advantage in LCD technology. The color display, watchable angles, resolutions, etc., require lots of resources to develop.
Feng Yu had persuaded Philips to give up on Plasma and focus on LCD. For now, LCD might not be as good as Plasma, but LCD will overtake Plasma in the future as PC technologies develop.
TV is divided into CRT TVs and flat-screen TVs, and flat-screen TVs are further divided into Plasma and LCD. They only need to keep their lead on one type, and they will not lose to other compet.i.tors.
Furthermore, as LCD production increases, their cost will be lowered. Plasma production’s output is low, and the cost cannot be reduced. Thus, LCD will have a pricing advantage, and as technologies developed, LCD will replace Plasma in the future.
If Philips wants to focus on both technologies, Feng Yu will have to part with them to focus on LCD TVs, even if they must invest a lot more. Anyway, he has the engineers from Chang Hong and can get TCL over to his side if this happens.
Garth heard Feng Yu’s question and replied seriously. “Mr. Feng, I represent Philips to give you a definite answer. We will give up our research on Plasma and focus on LCD.”
“Then, what about your cooperation with Thompson?”
“Thompson will carry on with the research themselves, and if they are successful, we can buy their patent rights. They are one of the companies with the most patents in consumer appliances and make high profits from authorization fees annually.”
Thompson did not change its path, and Feng Yu wonders if they will become bankrupt like his previous life. Nevertheless, he is relieved Philips had taken up his suggestion to focus on LCD technology.
It will be easier to maintain their lead in LCD technologies. Their compet.i.tors are only Sony, Toshiba, Samsung, and other j.a.panese and Korean companies. As for the Taiwanese companies, they are still lagging far behind.
Feng Yu doesn’t know that Thompson will be setting up a plant with TCL in China to form TKK company. This plant will be focusing on plasma TVs, and Chang Hong is focusing on LCD TVs because of Feng Yu. They gave the plasma TV market to TCL as not many people in China buy a plasma TV. In a way, TCL is also preventing j.a.panese and Korean companies from entering the Chinese markets. Actually, most people cannot tell the differences between plasma and LCD TVs.
Feng Yu told them not to worry. Plasma technology will lose its supporters quickly, and many factories will join the LCD faction soon. When that happens, it will be doomsday for plasma TVs!
TCL Technology