Samsung, the market leader in smart TVs, had lost its position in the high-end segment due to its lack of televisions with organic displays (OLED) in its range. However, Samsung corrected this by offering smart TVs with QD OLED panels from the subsidiary Samsung Display (SDC). Unfortunately, SDC can currently only produce the organic panels in limited quantities and diagonals, and there are no factories for making them. Additionally, the technology is more complex than expected.
To secure its position, Samsung apparently wants to use organic displays from the Korean panel manufacturer LG Display in its TVs in the coming year. The deal was reported by DSCC CEO and founder Ross Young at Display Week. Sony has benefited the most from Samsung Display’s QD-OLEDs, but Samsung itself was initially hesitant about OLED marketing.
The installation of third-party panels is normal in the TV sector, but in this case, it’s noteworthy since Samsung and LG have been grappling with OLEDs for years. Patent disputes and verbal attacks on the other’s panel technology are part of day-to-day business. With the planned deal between Samsung and LG Display, the two Korean groups will secure their positions in the TV market and at the same time keep their biggest Chinese competitor, BOE, at bay.
Samsung is likely to buy large WOLED panels with 77 and 83 inch diagonals from LG Display. Samsung itself has not been able to produce organic displays in these sizes so far. Reuters writes of initially two million pieces in the coming year and another three to five million panels in the following years. Then other diagonals could also be included, depending on how far Samsung has advanced its own OLED production.
This move will have a positive effect on customers. Significantly more flat-screen TVs with high-contrast OLED panels would be available, pushing the prices down. At the same time, Samsung will probably not actively promote the change of panel manufacturer, but the squabbles between the Korean competitors should then decrease.
Whether a WOLED or a QD-OLED panel is in the new television shouldn’t matter to most potential customers anyway.
