Samsung Electronics First to Use LGD Panels in OLED TVs
Samsung Electronics-LGD's Strategic Alliance
"We are preparing to launch an 83-inch OLED to provide consumers with a wider range of choices. The release date and price are still undecided."
Samsung Electronics has officially confirmed that the 83-inch OLED TV, scheduled for sale in July-August, will be equipped with panels made by LG Display. Samsung Electronics will expand options for customers who want to purchase OLED TVs, while LG Display can expect a 'win-win' effect by securing a new customer base in the stagnant display market through Samsung Electronics.
On the 5th, Samsung Electronics announced that it is preparing to launch an 83-inch OLED TV with LG Display panels to provide consumers with diverse choices. Although the exact release date and price have not been finalized, it is expected that consumers will be able to purchase it as early as July or by August at the latest. Samsung Electronics added the 83-inch OLED 4K TV to its July-August store sales catalog, alongside six existing models of 55-, 65-, and 77-inch OLED TVs. The 83-inch OLED panel is not produced by Samsung Display but is exclusively released by LG Display under the WOLED name.
Industry insiders view Samsung Electronics' first use of LG Display panels in its OLED TVs as a signal to secure additional panel supply from LG Display due to the expansion of the OLED TV market and the resulting shortage of panel volume. Although Samsung Display produces 55-, 65-, and 77-inch OLED panels, the quantity is limited, so depending on the future expansion of Samsung Electronics' OLED TV sales, it is highly likely that LG Display will expand the models it supplies.
Currently, Samsung Display, which has raised OLED panel yield rates to around 90%, is known to produce about 1.5 million panels annually. Compared to LG Display’s large OLED panel production capacity of up to 10 million units per year, this is significantly lower. Especially after Samsung Display announced plans to invest 4.1 trillion KRW in Asan, Chungnam, to establish an OLED production base, expectations have grown that LG Display, a competitor, could attract Samsung Electronics as a new customer. Since Samsung Display’s new investment focuses on producing small- and medium-sized IT panels rather than large TV panels, an environment has been created where Samsung Electronics has no choice but to rely on LG Display for the shortfall in panels.
If LG Display secures Samsung Electronics as a stable new customer, it can accelerate its turnaround to profitability. Dongwon Kim, a researcher at KB Securities, diagnosed LG Display by saying, "For large OLEDs, a turnaround to profitability is expected next year due to increased utilization rates following the acquisition of new customer Samsung Electronics."
Meanwhile, as Samsung Electronics re-enters the global OLED TV market dominated by LG Electronics after 10 years, the OLED TV market is expected to expand. Market research firm Omdia forecasts that while the global TV market size will decrease by 5.2% to about $97.1 billion this year compared to last year, the OLED TV market size will grow by 5.7% to exceed $11.7 billion, and the average price of OLED TVs will rise from $1,704 last year to $1,752 this year.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
