Samsung to buy OLED TV panels from LG Display for the first time

After years of rumours, Samsung appears to have agreed with LG Display to supply OLED panels for TVs. This is reported by Reuters news agency.

Here's What We Know

The contract will allow LG Display to generate additional revenue in the OLED panel market, at a time when it is facing stiff competition from manufacturers in China in the LCD screen segment. Samsung will buy high quality organic LED displays in 77" and 83" diagonals.

Interestingly, Samsung stopped producing its own OLED panels in the middle of last decade. The Korean company argued the decision was unprepared for the market and high production costs. But as we can see, this was the wrong move, with the manufacturer recently returning to producing OLED panels.

According to the source, Samsung will receive 2 million displays from LG Display next year and 1 million more in 2025. In 2026, the supply will increase to 5 million units at once. Thus, Samsung will order 10 million OLED panels within three years.

Currently, Samsung has a modest 6% of the OLED TV market. Sony's share is 26%. LG, meanwhile, controls more than half of the market. With LG Display complaining about slumping demand, the new deal comes at the right time.

Source: Reuters