Samsung has entered into a partnership with LG and will buy OLED panels for TVs from a competitor-MTN

A historic partnership between two global TV market leaders.

Top managers of Samsung Electronics and LG Display have signed an agreement for the supply of OLED panels, according to Korean media MTN, citing industry representatives. Until the transaction is completed, there is only a discussion of the working details. This is the first time Samsung will use LG’s OLED panels.
According to the publication, Samsung will buy at least 1 million OLED panels from LG in the second half of 2021, and 4 million panels in 2022-this is about half of the company’s current production capacity.
Analysts believe that Samsung was pushed to the deal by rising prices for LCD panels from Chinese manufacturers. In the first quarter of 2021, the cost of a 55-inch LCD display was $200 — a 74% increase over the same period in 2020.
In the second quarter of 2021, prices will increase by more than 10%, so the rejection of LCD has become “an important task to ensure the profitability” of Samsung’s TV business, MTN claims.
The second reason for the forced cooperation with a competitor is Samsung’s problems with the production of its own QD-OLED displays of the next generation.
According to the research company Omdia, in 2020, Samsung took 31.9% of the global TV market and holds the leadership for 15 years. In second place, LG-the company took 16.5% of the market. According to Omdia forecasts, in 2021, sales of OLED TVs will grow by 60% – to 5.6 million devices.

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