Finally, Alliance

OLED TV panels from LG Display show perfect blacks and extremely vibrant colors, superior to every other display technology on the market today.
OLED TV panels from LG Display show perfect blacks and extremely vibrant colors, superior to every other display technology on the market today.

Samsung Electronics and LG Display are expected to establish a visible “OLED alliance.”

Through this alliance, Samsung Electronics can quickly settle in the emerging OLED TV market, and LG Display is expected to secure the number one spot in the TV industry as a new customer and improve its performance early.

According to sources in the industry on June 8, Samsung Electronics recently completed compatibility registration for the 83-inch OLED TV (KQ83SC90A) at the National Radio Research Institute.

Compatibility registration is a procedure required to manufacture, sell, and import broadcasting and communication equipment such as TVs. It is common for a product to be launched within three months of registration.

The reason why Samsung Electronics’ first 83-inch OLED TV release attracted attention in the industry is that LG Display is the only company that can produce 83-inch panels at present.

Samsung Electronics stated, “We cannot confirm matters related to component procurement and supply lines.” However, it is expected that Samsung Electronics and LG Display will dramatically resolve the panel supply negotiations that have dragged on for more than 2 years.

According to the industry, the two sides have only a little fine-tuning left to do. It has already been reported that some of the initial quantities have been supplied. New products may be launched as early as September.

Samsung Electronics can dramatically increase its OLED TV sales volume through cooperation with LG Display.

Samsung Electronics’ market share in OLED TVs is 6.1%, following LG Electronics’ 54.6% and Sony’s 26.1%, ranking third. The initial quantity agreed to be supplied by both sides this year is reported to be around 500,000 units, so the sales volume of Samsung OLED TVs is expected to increase sharply.

Samsung Electronics is also expected to have the upper hand in negotiating prices with Chinese companies that monopolize the LCD market by expanding its OLED TV lineup.

LG Display, which has seen a rapid slowdown in the display market and accumulated losses, can aim for an early improvement in performance by securing new customers like Samsung Electronics.

Copyright © BusinessKorea. Prohibited from unauthorized reproduction and redistribution