Philosophical Split Emerges on Market Urgency of 1080p Sets
LAS VEGAS -- LG and Toshiba are laying out plans at CES to join Samsung in marketing DLP-based rear projection TVs capable of 1080p. LG also plans a 1080p LCoS set. But other manufacturers, most notably Thomson and Sharp, said Wed. they will wait out the 1080p market. The manufacturers cited higher priorities, such as seeding the DTV market for wider audiences of consumers, and a dearth of compelling 1080p content.
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The conflicting opinions on the urgency of introducing rear-projection TVs with 1080p come as Texas Instruments starts production of its 0.85” microdisplay device with 1,920x1080p resolution. Thomson will field 11 DLP-based 44- 61W rear projection TVs this year, but all will use TI microdisplays with 720p resolution, said Bharath Rajagopalan, gen. mgr. of product mktg. at TCL- Thomson Electronics (TTE). Thomson will continue with the 61W UltraSlim set ($6,999) and add the 50W model ($4,999) that had been expected last fall. “We can do 1080p, but the issue is the market ready?” Rajagopalan told us. “It’s not clear that there is a market for 1080p yet.”
But Toshiba Vp-Mktg. Scott Ramirez disagreed, saying although 1080p-based sets may suffer from lack of content in that resolution, they can still display native 1080i, which 720p models can’t. Toshiba will field 10-DLP-based rear projection TVs, including 6 with 1080p resolution, Ramirez said. But Toshiba will be playing in both 720p and 1080p courts, with 72W models in 720p and 1080p resolutions, said retailers we polled. Ramirez declined to comment.
Sharp, which returns to the rear projection TV market for the first time since introducing a 65W set in 1998, will carry 4 DLP-based models in 56W and 65W sizes with 720p resolution, Display Video Products Mgr. Aki Nishimura said. The lower-priced 650 series will feature 56W ($3,299) and 65W ($3,799) with integrated ATSC tuners, while the step-up 750 Series adds CableCARD and Gemstar-TV Guide interactive program guide. The 750 series, pricing of which hasn’t been set, also employs TI’s new HD4 0.67” microdisplay chip, which features 1,280x720p resolution. While the specs for the 0.67” haven’t been finalized, they will likely include a 1,500-2,000:1 contrast ratio and 500 lumens, Nishimura said. Making its first push into DLP- based rear projection TVs, Sharp has contracted with Delta Electronics to supply the light engines and assemble the sets at its factory in Mexico, Nishimura said. The sets are expected to ship beginning in March. Sharp is working on developing its own light engine, he said.
Despite deploying DLP, Sharp hasn’t ruled out using other technologies as well including LCoS and LCD. While Sharp manufactures LCDs, it doesn’t produce the microdisplay versions that are the bread and butter of suppliers such as Epson and Sony. Sharp opted for DLP because of it can hit lower prices than LCDs and parity isn’t likely to be reached for at least a year, Senior Vp Robert Scaglione said.
LG will continue to market 4 DLP-based TVs in 2005 in 44W-62W sizes including a 62W with 1080p resolution, 3,000:1 contrast ratio and 450 candelas. At the same time, LG is readying models based on Spatialight’s LCoS technology that use a 0.82” microdisplay chip to deliver 1,920x1080p. Vp Robert Perry declined to comment on LG’s product plans, but Spatialight has said it will deliver 21,000 chipsets -- each comprising 3 LCoS panels and a light engine -- to LG the first half of the year. Perry said he expects the quality of the LCoS panels to be on par with DLP’s. “If the quality is not equal to or better than DLP, it doesn’t make any sense to introduce the technology,” Perry said.
Perry also said he believes plasma TVs eventually will replace DLP-based rear projection models in the 40W- 50W sizes as prices continue to plunge. Noting plasma manufacturing has yet to reach maturity, Perry said additional cost savings can be wrung from the technology. Perry declined to comment on retailer reports that LG had floated the idea of fielding a Zenith-brand 42W plasma TV with 852x480 resolution at $1,499.
DLP appears to be moving to narrow the price gap with plasma in the 40W-50W sizes. Thomson will start its DLP line at $1,999 for a 44W model, company officials said. “We'll certainly be very competitive with the technology,” TTE Pres. Al Arras said. All 10 Thomson DLP models will be CableCARD- ready, the company said. Arras told a CES news conference Thomson believes it’s time the cable industry dropped its campaign to have the FCC lift the July 2006 integration ban on cable set-tops and embrace CableCARD rules that already “are the law of the land.” --
LG, seeking to expand the plasma TV market, will field a 71W model ($75,000) with 1,920x1080p resolution first quarter in limited distribution -- about 10 dealers, Perry said. LG also introduced 60W and 50W plasma TVs containing 160 GB PVRs, Gemstar interactive program guides and CableCARD capability. --
Tweeter is among the first retailers to carry Sony’s 70W LCoS-based rear projection TV. It showcased the set Wed. at a preview for reporters and analysts of its new concept store in Las Vegas. The store is part of an attempt by Tweeter to shift business to custom installation. Tweeter expects custom installation to represent more than 20% of its annual revenue within 3 years, up from the current 4%, CEO Jeffrey Stone said. Tweeter also rolled out Hewlett-Packard’s LCD and plasma TVs to its stores in the Chicago market and select locations in Fla., CFO Joseph McGuire said.