May 16, 2023 at 6:15 p.m. by Oliver Jäger – Samsung has concluded a deal with LG Display and will be supplied with ten million OLED panels in the coming years. This is reported by Reuters, citing several anonymous sources. Samsung stopped producing OLED panels in 2015 and incorrectly predicted that OLED televisions would not be a success.
South Korean rivals in the display business are now making common cause, as the news agency Reuters reports. Samsung is said to be relying on the support of its domestic competitor LG Display and want to purchase OLED panels from them as early as this quarter. Three anonymous sources are said to have confirmed this, according to Reuters. According to this, LG will deliver two million OLED panels to Samsung in the coming year and three and five million in the following years. These panels should be in the range of 77 and 83 inches and be of the WOLED (white OLED) type.
Samsung is lagging behind in OLED TVs due to misjudgment
This deal will have enormous economic significance for both Samsung and LG. For LG, the shipment of two million OLED panels is said to be worth US$1.5 billion and account for about 20 to 30 percent of the total production capacity for large-format OLED panels. Samsung, on the other hand, wants to open up the market for high-quality OLED televisions, as competition with Chinese competitors is intensifying in the lower price segment for LCD televisions. OLED panels are said to cost almost five times as much as LCD panels.
Also worth reading: LG taunts Samsung: QD OLED TVs more prone to burn-in than WOLED TVs
Samsung only launched its first QD OLED television last year and thus returned to OLED technology. The South Korean company may have to admit that it made a mistake after it stopped producing OLED televisions a few years ago. Samsung justified this with the high costs, because OLED technology would be more suitable for smartphones and tablets than for high-quality televisions, which turned out to be a misjudgment.
Samsung itself supplied OLED panels for Sony’s first QD OLED TVs, but it lags behind the Japanese competition in terms of OLED TV market share. According to the market research company Omdia, LG Display is said to be the leader in this discipline with a 54.6 percent market share. Sony is said to follow behind with 26.1 percent, while Samsung only has 6.1 percent. However, the latter could soon make up for this difference of 20 percent between Sony and Samsung with a stronger focus on OLED TVs.
Quelle: Reuters via The Verge