Samsung gives up and reportedly closes deal for LG’s OLED TV panels

Samsung has reportedly signed a deal for OLED TV panels from LG. reuters reports LG Display will supply high-end 77- and 83-inch white OLED panels to Samsung in a deal that could help it turn a profit amid fierce competition in LCD panels from Chinese rivals.

This is the first time Samsung has bought OLED panels from its South Korean rival after years of rumors about similar deals. There’s also a big admission of defeat after Samsung stopped making OLED TVs in 2015, citing the high cost of the panels in a miscalculation that the market wouldn’t be ready for such high-end TVs. Samsung led the way with its cheap but shoddy QLED TVs – a type of LED LCD – but OLED models have taken over the premium market.

Samsung has recently returned to OLED, with Samsung Display supplying OLED panels for its first QD-OLED TV launched last year and Sony’s first QD-OLED TV. reuters The report states that LG Display will supply 2 million OLED panels to Samsung in 2024, 3 million in 2025 and then 5 million in 2026.

LG captures more than 50 percent market share of OLED TVs with Sony at 26 percent and Samsung at just 6 percent, according to market research. Omdia,

The deal comes at an ideal time for LG Display, after it acknowledged there was “sluggish demand” for TVs and that sales of OLED TV panels were lower than expected. most recent quarterly earnings,

Times are also good for Samsung Electronics after the company had another terrible quarter following weak semiconductor demand and memory chip production cuts. While Samsung dominates the global TV market 17 years in a row, it has faced stiff competition from Chinese rivals with cheaper LCD TVs. It now clearly sees a missed high-margin opportunity with larger OLED TVs.