Samsung has reportedly reached a deal to purchase high-end OLED TV panels from rival LG, according to Reuters.
Though not yet confirmed, it would be the first time Samsung has sourced OLED panels from its South Korean competitor, acknowledging its earlier miscalculation in abandoning OLED TV production in favor of cheaper QLED models.
- The deal would see LG supply Samsung with 2 million OLED panels in 2024, with shipments rising to 3 million in 2025 and 5 million in 2026, sources told Reuters.
- The panels are expected to be larger, ranging from 77 to 83 inches, a sign that Samsung aims to strengthen its higher-end TV offerings.
- The move is expected to help Samsung turn a profit in the face of competition from Chinese rivals in the LCD panel market.
- LG currently dominates the OLED TV market with an over 50% share, while Samsung has only 6%.
- The deal benefits both companies, as LG Display has faced slow TV demand and lower-than-expected OLED panel sales, while Samsung Electronics has struggled with weaker semiconductor demand and a hit to its core memory chip sales.