LGD Raises OLED TV Panel Prices To Pursue Profitability

Since the introduction of OLED panels, LGD has been under pressure to reduce the cost and the price, in order to compete with high end LCD TVs. Prices have come down significantly and as we reported last week the top end 65-inch QLED is more expensive than the top end OLED TV. In addition, LGD is able to sell all the OLED panels it can make to one of 15 or 16 TV brands. Despite this progress and a yield of 90 percent for 55-inch and 65-inch panels, LGD is not yet breaking even. As a result, LGD has been increasing the price of OLED panels in the second quarter. The average selling price of large OLED TV panels rose 2.5 percent sequentially from USD 695.50 to USD 712.50 according to IHS Markit. The panels’ price had reached USD 812.50 in the first quarter of last year but has been backtracking ever since to as low as the USD 600 level. The report forecast the price to climb to USD 731.90 in the third quarter. The 55-inch panel, whose price fell to USD 527.60 Q118, rose to USD 535 in Q218.

Shipments of OLED TV panels were 673,000 units, up 78.5 percent from 377,000 Y-o-Y. Estimates for high-demand seasons in the third and fourth quarters were estimated at over 700,000 units per quarter. Global TV brands turning to OLED panels include LG Electronics, Japan’s Sony, Toshiba, Panasonic, European brands like Philips, Grundig, Vestel, B&O and Loewe and Chinese brands Haier, Skyworth, Hisense, Konka and Changhong. – OLED Association

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