LG Display is planning to boost its large OLED panel production this year, but the global undersupply that started in the second quarter of last year is likely to continue for a while.
LG Display is currently the only manufacturer of large OLED panels in the world. According to industry sources, the company is going to increase its production volume to up to three million units this year. Last year, it produced approximately 1.7 million units. The company is currently producing 8th-generation large OLED panels in Paju, South Korea while preparing to produce the same product in Guangzhou, China.
Nevertheless, the undersupply is predicted to continue as large OLED TVs is getting popular along with increases in the number of large OLED TV manufacturers and their large OLED TV production volume. In short, the market is a seller’s market now.
In the past, OLED TVs were produced by a small number of companies such as LG Electronics, Konka, Skyworth and Changhong. Last year, however, Sony joined the ranks. At present, the number of large OLED TV manufacturers is 14, including Panasonic, Philips, Loewe, Metz, Vestel, and Toshina. Sharp is expected to follow suit, too.
According to market research firms, the global total OLED TV supply reached 1.5 million units last year with a year-on-year growth of 72%. The volume totaled 602,000 units in the first quarter of this year and is estimated to reach 673,000, 743,000 and 804,000 in the remaining quarters of this year, respectively.
These days, the large OLED TV manufacturers are marking down their prices one after another. For example, the prices of new products of Sony and Panasonic are 20% to 30% lower than those of their products released last year. LG Electronics recently lowered the price of its 55-inch OLED TV from US$4,000 to US$2,500.