Samsung admits defeat and reportedly inks deal for LG’s OLED TV panels

Samsung has reportedly signed a deal for LG’s OLED TV panels. Reuters experiences that LG Show will provide high-end 77- and 83-inch white OLED panels to Samsung in a deal that might assist it flip a revenue amid fierce competitors in LCD panels from Chinese language rivals.

That is the primary time Samsung has bought OLED panels from its South Korean rival after years of rumors round related offers. It’s additionally an enormous admission of defeat after Samsung stopped making OLED TVs in 2015, citing the excessive prices of the panels in a miscalculation that the market wouldn’t be prepared for such high-end TVs. Samsung pushed forward with its cheaper however inferior QLED TVs — a variation of LED LCD — however OLED fashions have dominated the premium market.

LG has greater than 50 p.c market share of profitable OLED TVs

Samsung has returned to OLED just lately with its first QD-OLED TV launched final yr and Samsung Show supplying OLED panels for Sony’s first QD-OLED TV. Reuters experiences that LG Show will provide 2 million OLED panels to Samsung in 2024, 3 million in 2025, after which 5 million in 2026.

LG has grabbed greater than 50 p.c market share of OLED TVs with Sony at 26 p.c and Samsung at simply 6 p.c, in keeping with market analysis from Omdia.

The deal comes at a perfect time for LG Show after it admitted there had been a “sluggish demand” for TVs and decrease than anticipated OLED TV panel gross sales in its just lately quarterly earnings.

The timing can also be good for Samsung Electronics after the corporate had one other horrible quarter following weaker semiconductor demand and a minimize to reminiscence chip manufacturing. Whereas Samsung has dominated the worldwide TV marketplace for 17 years in a row, it has confronted powerful competitors from Chinese language rivals with cheaper LCD TVs. It now clearly sees the excessive margin alternative it missed with massive OLED TVs.