What They Say
The Elec highlighted that LG Display will ship fewer OLED TV panels than it had initially hoped – at around 7.8 million units, with 5.4 million being made in Guangzhou, China and the rest in Paju, Korea. However, the likely result will be below this although the firm hopes to get to 9.2 million. That number, The Elec said, is excluding any volume sales to Samsung.
Separately, The Elec said, quoting DSCC as the source, that there will be no spending at all on developing large OLED production for TVs in 2023, after falling from $3 billion in 2019 to $2.049 billion in 2020, $1.47 billlion in 2021 and $1.42 billion this year. It is expected to resume at $2.011 billion in 2024 and $1.51 billion in 2025. Inkjet equipment will account for 75% of that amount in 2024 and 100% in 2025 as CSOT builds its capacity. LGD is not expected to spend anything next year or in 2025, but will commit $492 million in 2024. SDC is expected to boost its capacity by changes in the QD-OLED architecture, without more equipment.
What We Think
As we have reported many times, Samsung has looked at buying WOLED TV panels from LGD, but its price positioning for its OLED TVs has made the deal impossible, so far. (The Best Quality TVs at a Great Price – Surely They Should Sell Well? for a summary)
Bizarrely, The Elec said “LCD prices have dropped this year but could increase again before the year’s end if the low demand for TVs continues, which means OLED panel prices could be more favorable for the tech giant.” That’s not how it works in my experience!!! (BR)
LCD v OLED TVs as presented at the SID DSCC Business Conference earlier this year – OLEDs remain a niche
