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High oil prices spur demand for low energy electronics

Posted: Sunday, July 6, 2008, 7:22 (BST)
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PC makers from Apple to the Lenovo Group are replacing screens lit by conventional cold cathode fluorescent lamps (CCFLs) with light emitting diode (LED) displays.

"LED saves up to 40 percent of the power used in traditional backlights," said Jeff Kim, an analyst at Hyundai Securities. "Next year they will be commonly found in notebook screens, and will be increasingly used in TV panels from 2010."

Market researcher DisplaySearch expects LED-backlit displays to account for 50 percent of notebook panels in 2010, up from 12 percent this year. By 2015, all laptop displays will use LEDs, generating sales of $6 billion.

LED is also set to claim traditional incandescent lamps in buildings and on streets. Samsung Electro-Mechanics recently replaced lighting in the South Korean parliament building with new LED products and reported LED consumed just one sixth the power of incandescent bulbs.

HIGHER PRICE TAG

But too often, these energy-efficient products carry a hefty price premium to reflect the cost of developing new technologies, which in turn hampers faster adoption.

For instance, Whirlpool's washing machines with steam feature are sold at $1,300-$1,500 (655-756 pounds), compared with a traditional machine priced at $700.

Still, makers argue that the lifetime savings from green products could amount to the price of the appliance itself.

"You could buy another 32-inch LCD TV within 3 years with the money saved on electricity from our 52-inch power-saving TV," said LG's Kim, referring to a new TV model with a sensor that adjusts brightness to match surrounding light levels.

Sometimes a little incentive helps.

Japanese electronics retailer Bic Camera is running a campaign in which buyers of eco-friendly products get extra credit points that can be used for future purchases.

"That's a little nudge to help people buy products that are more efficient, even if they are slightly more expensive," said Naoko Ito, a Bic Camera spokeswoman. "Consumer interest is high."

A U.S. survey by Forrester Research last year found that green consumers, who agree to pay extra for electronics that use less energy or come from an environmentally friendly maker, are more brand-loyal than average consumers.

"More than 25 million U.S. adults fall into this segment, enough for even the largest consumer electronics marketers to target," Forrester analyst Christopher Mines said.

"Green-targeted PCs and other electronics will evolve as part of the consumer electronics industry's move to go beyond 'beige box' design," he said. "Apple certainly leads the way here."

A green-technology product that establishes new benchmarks and appeals to concerned consumers "will have an iconic market presence if done right," Mines adds.



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