According to an exclusive report from Reuters, Samsung Electronics will buy 2 million W-OLED TV panels from LG Display in the first year. The company plans to buy 3 million OLED TV panels from LG in the subsequent year and 5 million units the year after. Initial supplies would be 77-inch and 83-inch OLED panels. With this supply, Samsung can create an entire lineup of premium OLED TVs as Chinese firms like TCL, Hisense, Xiaomi, and Skyworth are eating up its low-end TV sales.
The historic OLED TV panel deal will be a win-win for both LG and Samsung
Samsung Display (which makes TV panels) initially offered 55-inch and 65-inch QD-OLED panels to Samsung DX (which sells TVs). However, the shipment numbers were relatively low due to the new technology and lower yield. Although Samsung Display started offering 77-inch OLED panels this year, it has yet to make 83-inch panels. This is where LG comes in, as it already makes 83-inch OLED panels.
With this historic deal between LG Display and Samsung Electronics, Samsung could become the second-biggest OLED TV brand in the world, overtaking Sony. This deal will also help LG Display, which has been making losses for four quarters in a row as TV demand dropped after the COVID-19 pandemic eased. A contract with Samsung will help it regain profits and run its OLED factories at full capacity.
According to Omdia, LG is currently the biggest OLED TV maker, with a market share of 54.6%, while Sony (26.1%) and Samsung (6.1%) rank second and third, respectively. The market is expected to grow to $11.7 billion in 2023 and $12.9 by 2027.
