Shulou(Shulou.com)11/24 Report--

CTOnews.com May 16, according to Reuters, three sources said that South Korea's LG Display will start supplying high-end TV panels to Samsung Electronics as early as this quarter. The deal will help make a profit for the lossmaking LG Display.

LG Display aims to supply 2 million units next year and increase shipments to 3 million and 5 million units in subsequent years, initially likely to supply Samsung with 77-inch and 83-inch white OLED (WOLED) TV panels, according to two people with direct knowledge of the matter.

With the deal, Samsung could overtake Sony to become the world's second-largest maker of OLED TVs. Analysts speculate that LG Display is in talks to supply OLED TV panels to new customers.

All sources declined to be named because the deal was not made public. LG Display and Samsung Electronics declined to comment.

Samsung Electronics has been slower to develop OLED TVs than its competitor LG Electronics, and the company believes that OLED is more suitable for small devices such as smartphones and tablets, in part because OLED TVs are too expensive, the report said.

Shipments of 2m OLED panels will be a major driver for LG Display, valued at at least $1.5 billion (CTOnews.com Note: currently about 10.44 billion yuan), accounting for 20 to 30 per cent of its total capacity for large OLED panels, which will bring it to full capacity, analysts said.

Samsung Electronics has its own display manufacturing division, Samsung Display, which specializes in producing OLED screens for brands such as Apple and Samsung. Samsung currently ranks third with 6.1 per cent market share in OLED TVs, followed by LG Electronics (54.6 per cent) and Sony (26.1 per cent), according to market research firm Omdia.

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