Samsung: How LG, Samsung partnership could be ‘bad news’ for Sony

LG Display and Samsung have reportedly struck a deal wherein LG will supply high-end TV panels to Samsung from as early as this quarter. The deal may help LG turn its losses into profit and Samsung to expand its share in the OLED TV market. LG Display slumped to a 1.1 trillion won ($823 million) operating loss for the January-March quarter.
Citing two sources with direct knowledge of the matter, a report in news agency Reuters said that LG Display aims to supply 2 million units next year and boost shipments to 3 million and 5 million units in subsequent years. Initially, LG will supply 77-inch and 83-inch white OLED (WOLED) TV panels. Furthermore, it could also help Samsung to overtake Sony as the second largest supplier of OLED TVs worldwide.

Why this deal is good for Samsung
While LG aims to turn losses into profits, the deal could help Samsung expand in high-end organic light emitting diode (OLED) TVs at a time when the company is facing competition from Chinese vendors. OLED panels cost nearly five times more than liquid-crystal display (LCD) panels.
Samsung is the world’s biggest TV manufacturer, however, it has reportedly been slower than its hometown rival LG in terms of embracing OLED TVs.
Samsung argues that the OLED technology is more suited to small devices such as smartphones and tablets, partly due to the high cost of panels, the report said.

LG Display’s quarterly losses
Mired by a limited customer base, fall in demand for new TVs, soaring inflation and slowing economy, LG has been running its OLED factory below full capacity.
The company has recorded losses for four consecutive quarters since the second quarter last year due to weakening global demand for electronic devices.
The company supplies OLED TV panels to LG Electronics and Sony. It also supplies smartphone displays to Apple. Samsung Display makes OLED screens for iPhones and Galaxy smartphones.

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