Samsung, a long-time critic of OLED, is reportedly signing a deal to buy OLED panels from its South Korean rival, LG. While neither company has confirmed the reports, Reuters suggest that LG Display will be supplying Samsung with traditional white OLED panels, a significant departure from Samsung’s use of QD-OLED panels in its S95C and S90C TV models.
Samsung’s decision to buy OLED panels from LG signals a change in its business strategy, especially considering the company’s prior stance on the steep price of OLED panels. Back in 2015, Samsung stopped manufacturing OLED TVs, banking on the belief that the market was not ready to embrace such high-end TVs. Instead, Samsung put its weight behind QLED TVs – a less expensive but also less advanced variation of LED LCD – a move that now seems to have backfired as OLED models continue to dominate the premium market.
According to Reuters, LG Display will supply Samsung with 2 million panels in 2024, increasing shipments to 3 million and 5 million units in subsequent years. Initially, these will be 77- and 83-inch panels, suggesting Samsung’s intention to strengthen its position in the high-end TV market. This deal signifies the end of a long-standing rivalry that saw Samsung and LG frequently clashing over the superiority of Samsung’s quantum dot-infused QLED TVs versus LG’s OLED TVs.
Samsung’s stake in the OLED TV market currently stands at 6.1%, according to market research firm, Omdia. This move to secure a deal with LG could be a strategic play by Samsung to gain ground in the OLED TV market and better compete with Chinese manufacturers offering lower-cost LCD televisions.
For LG, this deal could prove to be a lifeline after four consecutive quarters of losses. While LG Display also manufactures smartphone screens for Apple and OLED panels for Sony and LG Electronics, its OLED manufacturing facility has been underutilised due to a drop in demand for new TVs and a limited customer base.
While this is a surprising twist, some industry experts suggest that Samsung may have taken this route to address issues with volume and screen size availability in its QD-OLED panel production. Vincent Teoh of HDTVTest told Engadget, “QD-OLED panel production from Samsung Display is still limited in quantity at the moment. WOLED panels supplied by LG Display can go up to 83 and even 97 inches, or as small as 42 and 48 inches.”
However, the decision to incorporate traditional WOLED technology into its product line may present a communication challenge for Samsung, especially given its strong support for QD-OLED technology over traditional WOLED. It will be interesting to see how Samsung navigates this potential minefield and what this means for the future of the TV industry.
As we await official comments from both Samsung and LG, the question remains whether QD-OLED will take a backseat, leaving the industry with less competition, or if Samsung has a trick or two up its sleeve.
