South Korea’s LG Display Co Ltd is gearing up to supply high-end OLED TV panels to none other than its rival, Samsung Electronics Co Ltd.
Although no official statement has been released, anonymous sources—citing inside information—claim the deal could kick off as early as this quarter. This potential partnership has the potential to reshape the display market and shake up the competition.
A Boost for LG Display’s Profitability
According to three unnamed sources who spoke to Reuters, LG Display reportedly aims to provide Samsung with 2 million units of OLED TV panels next year. If successful, this collaboration could help LG Display turn a profit and strengthen its position in the industry. The initial consignment of panels to Samsung might include larger-sized variants, such as 77-inch and 83-inch white OLED (WOLED) panels. While these details are still shrouded in speculation, the potential impact on both companies is undeniable.
Samsung’s Strategic Move into OLED TVs
For Samsung, the reported deal signifies a strategic push into the high-end OLED TV market, where it has been slower to adopt the technology compared to its local competitor, LG Electronics Inc. By exploring partnerships with LG Display, Samsung aims to capitalize on the growing demand for OLED displays and expand its market presence. While OLED panels come with a higher price tag compared to traditional LCD panels, Samsung believes that the allure of OLED technology, with its vibrant colors and deep blacks, will captivate consumers and propel its growth.
Anonymous Sources Hint at Market Opportunities
The information surrounding the LG Display-Samsung partnership comes from three undisclosed sources who have chosen to remain anonymous, as per Reuters. Although LG Display and Samsung Electronics have declined to comment on the matter, market observers have long speculated that LG Display was in talks to supply OLED TV panels to a new client. This report from anonymous sources is the first to provide details of the potential deal between the two South Korean giants.
Implications for the OLED TV Market
If the rumors prove true, this collaboration could position Samsung Electronics as a significant player in the OLED TV space, potentially surpassing Sony Corp to become the second-largest supplier of OLED TVs globally. As the market for OLED TVs continues to grow, with a projected value of $11.7 billion in 2023 and an expected rise to $12.9 billion by 2027, as stated by market research firm Omdia, securing a reliable supply of OLED panels becomes crucial for manufacturers.
Share your thoughts as we await official LG Display and Samsung Electronics confirmation.
Source: Reuters
