Samsung turns to LG for OLED TV panels
According to a report by Reuters, Samsung has recently inked an agreement to procure OLED TV panels from LG. The deal involves LG Display, a renowned manufacturer of display technologies, supplying Samsung with premium white OLED panels measuring 77 and 83 inches. This strategic partnership holds the potential to bolster Samsung's financial performance, particularly in light of the intense competition it faces in LCD panels from Chinese adversaries.
In a surprising turn of events, Samsung has made its first-ever purchase of OLED panels from its domestic competitor, ending years of speculation surrounding such agreements. This decision marks a significant acknowledgment of defeat for Samsung, as the company had halted its production of OLED TVs back in 2015. At that time, Samsung justified its decision by highlighting the exorbitant costs associated with OLED panels and incorrectly assuming that the market was unprepared for such high-end televisions.
LG is the OLED king
After a hiatus from OLED technology, Samsung made a comeback by introducing its first QD-OLED TV in the previous year. Furthermore, Samsung Display, a subsidiary of the company, has been providing OLED panels for Sony's inaugural QD-OLED TV. In line with this resurgence, the report from Reuters revealed that Samsung has secured a deal with LG Display to acquire a substantial number of OLED panels. As per the agreement, LG Display is set to supply Samsung with 2 million OLED panels in 2024, followed by 3 million panels in 2025, and a significant increase to 5 million panels in 2026.
According to market research conducted by Omdia, LG has emerged as the dominant player in the OLED TV market, capturing over 50 percent of the market share. Sony holds the second position with a respectable 26 percent share, while Samsung trails behind with a mere 6 percent share.
Samsung has undergone a notable strategic transformation with its recent arrangement to obtain OLED panels from LG Display. This move signifies a departure from Samsung's previous approach, which involved a temporary halt in OLED production and grappling with fierce competition from Chinese counterparts in the LCD TV sector. By acknowledging the untapped prospects and lucrative profit margins associated with large OLED TVs, Samsung has come to appreciate the significance of this market segment.
The partnership with LG Display not only signifies Samsung's commitment to reestablishing itself in the premium TV market but also highlights the company's determination to offer consumers the best display technology available. With the introduction of its QD-OLED TV and the supply of OLED panels for Sony's QD-OLED TV, Samsung has already demonstrated its renewed focus on OLED technology.Advertisement