Innolux Corp (群創光電), the world’s No. 3 flat-panel maker, defended itself on Thursday against an allegation that it supplied regular high-definition panels for use in TV sets marketed as 4K ultra-HD panels and sold them in China.
The China Household Electrical Appliances Association reported on its Web site on Tuesday concerns that a 50-inch low-cost “4K” TV branded by Beijing-based LeTV Information Technology Co (樂視網信息技術) is not what it claims to be, citing industry sources saying that the allegedly phony ultra-HD TV uses panels supplied by Innolux.
Innolux said in an e-mailed statement that it finds it regretful that the Web site’s inclusion of Innolux in its report came without contacting the company for confirmation or comment.
The company said that its 4K panels are award winning, real RGB (red-green-blue) 4K2K products with an ultra-HD resolution of 3,840 by 2,160 pixels, unlike the alleged phony panels that add white pixels to create cheap RGBW panels with a high pixel density, but low quality images.
Eddie Kuo (郭正夏), a deputy director at Innolux, said that the RGBW panels in the report look similar to products launched by South Korean industry leaders Samsung Electronics Co and LG Display Co in the fourth quarter of last year.
The RGBW solution can save 33 to 50 percent on component costs while simulating 4K resolution, he said.
Innolux is not afraid of competition because it is confident that consumers will be able to tell the difference in quality between real and fake 4K products, Kuo said.
Innolux and Taiwanese firm AU Optronics Corp (友達光電) are expected to together take 58 percent of the 4K display market this year, according to market research firm NPD DisplaySearch, followed by Samsung and LG with 25 percent between them and Chinese manufacturers China Star Optoelectronics Technology Co (華星光電) and BOE Technology Group Co (京東方), which are expected to share 14 percent.
Some panel makers are promoting reduced-specification 4K TV panels to lower costs and increase shipments, but this strategy might be incompatible with top brands aiming to position the new format as a high-end segment sold at premium prices, NPD DisplaySearch said.