Citing two sources with direct knowledge of the matter, a report by news agency Reuters said that LG Display aims to supply 2 million units next year and increase shipments to 3 million and 5 million units in subsequent years. To increase up to Initially, LG will supply 77-inch and 83-inch white OLED (WOLED) TV panels. Apart from this, it may also help Samsung to overtake Sony As the second largest supplier of OLED TVs worldwide.
Why this deal is good for Samsung
While LG aims to turn losses into profits, the deal could help Samsung expand into high-end organic light-emitting diode (OLED) TVs at a time when the company faces competition from Chinese vendors. OLED panels cost about five times more than liquid-crystal display (LCD) panels.
Samsung is the world’s largest TV maker, however, it has reportedly been slower than its hometown rival LG in terms of adopting OLED TVs.
The report states that Samsung argues that OLED technology is more suited to smaller devices such as smartphones and tablets, partly due to the higher cost of the panels.
lg display quarterly loss
Hampered by a limited customer base, declining demand for new TVs, rising inflation and a slowing economy, LG is running its OLED factory below full capacity.
The company has posted losses for four consecutive quarters since the second quarter last year due to weak global demand for electronic components.
Company supplies OLED TV panels LG Electronics and Sony. It also supplies smartphone display Apple, samsung display Makes OLED screens for iPhones and Galaxy smartphones.