Good Yield
The yield rate of UHD OLED panels manufactured by LG Display has reportedly reached 65 percent. The Korean company is gunning for a yield rate of 80 percent, and will then supply panels to not only LG Electronics but also Chinese and Japanese TV makers as early as next year.
According to industry sources on Oct. 20, LG Display recently saw the yield rate of its UHD OLED panels reach 65 percent, rapidly strengthening productivity. With this improved productivity, the company seems to have laid the groundwork for lowering prices of OLED TVs, which have been a stumbling block to expansion. Thanks to some price adjustment, the sales volume of OLED TVs, which increased by more than 300 percent in the first half of this year, is expected to grow more rapidly.
LG Electronics and LG Display are currently dominating the global OLED TV market. However, it is quite possible that an increasing number of companies will sell OLED TVs mainly in China and Japan, which are the world’s largest and second-largest TV markets, as early as late this year. LG Display has recently strengthened its cooperation with TV manufacturers based in the two Asian countries such as Panasonic, Skyworth, Konka, Chang Hong, and Haier, encouraging them to enter the OLED TV market.
There is increasing competition in the OLED TV market, which has been dominated by LG Electronics. According to market research firm IHS iSuppli, Chinese firms made up 11.4 percent of the market in terms of the number of units sold, or 15.2 percent in terms of sales dollar value, in the first quarter of this year. Considering that their weight was only 1.3 percent last year, it is easy to see the rapid growth of Chinese OLED TV makers.
Panasonic, Sharp, and some European companies are highly likely to release OLED TVs with LCD panels. This trend was noticeable at this year’s IFA in Berlin, Germany last Sept. An industry source said, “There are a growing number of customers who ask LG Display to give samples of UHD OLED TV panels.” The source added, “An increasing number of companies are likely to showcase OLED TVs starting early next year, and the number of firms that will introduce OLED TVs to the market is expected to increase.”
Owing to improved manufacturing yield and increased supplies, the prices of OLED TVs are gradually decreasing as well. The price of LG’s 55" ultra OLED TV (model number: 55EF9500) has decreased by 27 percent in the U.S. market, and it is being sold for US$3,999 (4,700,000 won) per unit, according to Seoul-based market research institute UBI Research. LG is also conducting a marketing campaign for 55" and 65" models in the nation by lowering the price of each model to 4.5 million won (US$3,976) or 7.9 million won (US$6,980) through various kinds of discounts.