Hisense Exec claims TV Price Wars is hampering innovation in the industry – Gizmochina

Television technology has come a long way ever since its invention. From the old box-shaped CRT television that could only show “black and white” video, to the current market standard of slim and big-screen smart TVs that are able to show over 10 billion colours on screen at Full HD, 2K, 4K and if you are ambitious enough, 8K as well.

At Hisense’s official launch event for its first in-house 8K AI GPU chip on January 11, Hisense Vice President, Yu Zhitao boldly claimed that the television industry globally will undergo a massive wave of change in trends in the coming years. Yu claims that the picture quality of the TV shows and live streams shown on-screen will determine the purchase decision of an interested buyer to purchase the TV or not.

The Popular TV manufacturer, Hisense also foresees the coming future where TV manufacturers stop focusing to compete on screen size and sales numbers but instead focus on their smart graphics processing units(GPUs) and the sound system of their TVs due to changing consumer demands throughout the industry as a whole.

Yu mentions the two important reasons why Hisense has this prediction for the future of the TV industry. The reasons are that the TV industry is already reaching the limit of bigger screens and because of TV manufacturers playing the game of price wars amongst each other.

The trend of large-screen TVs in the industry is already popular due to many years of advertising from TV manufacturers saying that a larger TV allows for a more complete multimedia viewing experience. However, large-screen TVs have their limitations. When the screen is larger, and the shows are not upscaled to higher definitions, the consumers will start to notice the imperfections of their large-screen experience like more noticeable lower resolution, and colors being washed out due to lower pixel density. With that in mind, the GPU in a TV is more important than ever to enhance the TV watching experience.

Yu mentions that the category of 75 inches and above large-screen TVs has grown exponentially in the past few years and that as we are approaching 100 inches for our TVs, users now need better GPU rendering than ever to upscale and support a higher resolution like 8K. Hisense is already prepared as it has just developed its first in-house 8K AI GPU chip recently.

The last reason is the fierce but unhealthy competition between TV manufacturers, which Hisense refers to as the TV price wars. To illustrate, TV manufacturers advertise their product as a large-screen TV at an affordable and cheap price tag, and this price-to-screen size ratio seems to be what they are only focusing on. The “bigger screens, lower price” trend has made the market value of the TV industry trend lower, the revenue stream of manufacturers to trend lower, and stifled innovation in the TV industry as well.

In the end, Hisense emphasizes that if the TV industry transition to high-quality TVs that focus on other aspects like color accuracy, screen quality, and more complete sound systems, plus a transition from unhealthy pricing wars to healthy value wars (where the TV is bought on the basis of the value it provides to the viewing experience), then the industry will still have a future amongst other technology products like laptops, tablets, and smartphones as well.