Competitive Pressure Drives OLED Panel Pricing Down

According to an article published by Digitimes, Samsung’s OLED panel pricing for handsets is approaching LCD pricing levels and will reach parity in 2015. The report continues that in 2013 the price premium per Samsung OLED panel was in the $10 to $15 range compared to LCD panels. In 2014 this premium had already contracted to about $5. 2015 should see this difference become basically zero.

Digitimes states that even though the production cost for OLED panels has fallen based on better production yields at Samsung, there is still a 10% cost difference to comparable LCD panels.

The recent price drops of Samsung OLED panels for handsets has been coming from pure competitive price pressure, mainly in China. Digitimes quotes industry sources stating that Samsung’s market share weakened in 2014 creating this price decline.

The price pressure seems to come from Chinese Full HD LTPS TFT LCD panels rather than OLED panels from other manufacturers. The report sees this as a challenge for Sharp as well, as Japanese sources stated that Sharp will be decreasing its output of IGZO panels in 2015 by as much as 40% due to pressure from Chinese panel makers (Sharp Forecasts Results Shortfall). – Norbert Hildebrand