What Display Daily thinks: For two companies that should be going at it in full battle regalia, Samsung and LG are acting like an old married couple. Sure, they have their differences, but they are comfortable with them and are settled in as housemates until the mortgage gets paid off.
The mortgage in this insulting analogy is the price paid for OLED. I don’t get how market dominance and unbeatable next gen color gamuts and performance doesn’t translate into much bigger profit margins. Was it hubris? The expectation that everything would just flow upwards when in fact the LCD market is fighting back by getting better at doing TVs.
Was it pricing? It still smells like an underestimation of the technology costs and a supply chain that is more concerned with holding on to some sort of figurative technology lead without a comparable sales lead.
I mean, I get it, Apple will save the day with iPads, and the IT monitors will just flow. Apple overcharges for everything it sells because it can, and IT monitors are going to go for value and not tech. That’s literally the whole IT market – whatever works at a price. As for gaming, it is in the doldrums. It’s stuck on where its hardware goes. The games are still selling and the dynamics of gaming haven’t changed much in the last thirty years, but the hardware upgrade cycle ain’t what it used to be.
So, it’s good that LG and Samsung are paying the mortgage, sharing the utility bills, and having nice family meals, getting along together. They may even start taking long walks and going out on date nights because, you know, they are probably going to have to better partners to each other if they are going to make this thing work, and make sure they don’t fall behind on the bills.
LG Display to Boost OLED Panel Supply to Samsung Electronics, Signaling Stronger Performance
LG Display has increased its supply of OLED panels to Samsung Electronics for use in television production, Shipments of OLED panels to Samsung began in earnest last February, with expected volumes to reach between 800,000 to 1 million units, doubling initial projections.
According to the Korean press, sources claim LG Display started supplying OLED panels to Samsung’s TV business division last year with about 100,000 panels delivered initially. This contributed to a substantial 27% month-over-month increase in LG Display’s total OLED panel shipments in February.
Samsung Electronics currently offers four OLED TV sizes and is projected to introduce additional models featuring 42 and 48-inch panels supplied by LG Display. The expansion would bring to market a broader range of OLED TVs spanning from 40 to 80 inches.
Despite reporting losses for six consecutive quarters up to the third quarter of last year, LG Display turned a profit in the fourth quarter. However, it is anticipated to post an operating loss in the first quarter of this year.
