Samsung Electronics and LG Display’s ongoing negotiation over the supply of TV OLED panels was focused on budge OLED panels, TheElec has learned.
Samsung, the world’s largest TV manufacturer by revenue, is launching OLED TVs this year after a 9-year hiatus and is procuring OLED panels from Samsung Display and LG Display.
In its negotiation with LG Display, Samsung is focused on procuring LG Display’s M series of OLED panels, its lowest-tier offering.
LG Display’s TV OLED panels come in three series: R, P and M. R is the premium series and the panels offer a brightness of 200nit. P and M series each offer 180nit and 150nit, respectively.
Samsung wants the cheapest series out of the three to increase its profitability as much as possible, sources said.
Display panels account for one-third of the cost to make TV sets: Samsung is confident that it can use its position as the world’s top TV brand to push as many units as possible while using the cheapest OLED panels available, the sources said.
LG Electronics, meanwhile, currently uses all three series of OLED panels provided by LG Display.
Meanwhile, Samsung has also asked LG Display whether it was possible for them to develop a more affordable version of its R series of panels, which has 200nit brightness.
However, sources said LG Display could refuse this request as it has been selling R series panels to LG Electronics and Sony at a high price tag.