IFA: German Premium Design brands Metz and Loewe to launch OLED TVs

[donaldk]

Sized 55" and 65", both German brands/manufacturers are bound to be using LG Display glass in their new lines that are combining style with state-off-the-art display technology to warrant both brands premium prices. The Loewe bild 7 55" will be available from €4990. Metz was acquired by Skyworth of China in June 2015. Metz still manufactures/assembles its premium TVs in Germany.

The Metz Novum OLED TVs will sport dual tuners for DVB-S2, DVB-T and DVB-C, satellite, terrestrial and cable reception, as well as a 1 TB hard drive storage PVR.

The TVs are to hit the market following IFA 2016 that takes place the first week of September.

[donaldk]

Bang & Olufsen a/s ("Bang & Olufsen") initiated a review to identify strategic and structural options to increase scale and further reduce complexity within Bang & Olufsen. As a result of this review, Bang & Olufsen has entered a strategic technology partnership with LG, one of the world’s largest producers of TVs and a technological frontrunner with its leading OLED technology and WebOS.

The agreement entails that Bang & Olufsen will focus on its unique competencies within design, acoustics and smart home integration within TV development, and combine this with LG’s technological leadership within OLED technology.

“This partnership with LG will enable Bang & Olufsen to stay at the forefront of innovation in the TV category, a category which is currently undergoing significant change and which is very important to Bang & Olufsen. The partnership will address Bang & Olufsen’s key challenges related to scale and complexity”, says CEO Tue Mantoni.

The partnership will help solve a key strategic challenge as Bang & Olufsen will achieve technological capabilities and scale needed to improve the long-term profitability of the company. The partnership will allow Bang & Olufsen to focus on core competencies within acoustics and design, while further optimising the company’s supply chain, development, production and service.

The first OLED TV produced by LG for Bang & Olufsen as a result of the partnership is expected to be launched in 2017. Further, the partnership involves collaboration in other areas such as license and product bundle activities.

As a consequence of the partnership, Bang & Olufsen expects to improve gross margins and reduce capacity costs. The agreement has an annual savings potential of DKK 150-200m (€21-28 million/$23-30 million) when fully implemented over the next three years. As such, the partnership is an important step towards achieving the financial targets set out for 2017/18 of an EBIT-margin of approximately 7 per cent and a positive free cash flow.

As a result of the partnership Bang & Olufsen expects to realize restructuring costs of DKK 10 to 15 million, of which up to DKK 5 million will be realized in the fourth quarter of 2015/16. The restructuring costs have not been included in the current outlook for the 2015/16 financial year.

[donaldk]

LG's ODM panel business is taking off this IFA that starts in Berlin this coming week, with a number of Chinese manufacturers, Grundig, Hisense, ChangHong,  joining the luxury brands, in bringing to market 55" and 65" OLED TVs using the panels till now excluisively supplied by LG Display to LG Electronics. According to reports ahead of the show these will all be at least somewhat higher priced than the LG TVs.

Last year only, outside manufacturer Panasonic launched a €10K 65" curved premium model.