LG falls behind Samsung in phone OLED displays, may source them from China

LG falls behind Samsung in phone OLED displays, may source them from China
Oh, how the mighty have fallen! LG used to breathe down Samsung's neck when it came to OLED displays but with the focus of the world's largest phone maker moving to small, flexible ones for phones, the division of labor now seems to be LG for TVs and Samsung for handsets.

Such is the dearth of OLED-making abilities over at LG, that the company will reportedly turn to the Chinese BOE to source them for its own phones going forward. Huawei has already moved from LG panels to BOE for its flagship phones, and now LG itself may be about to do the switch.

It's all part of the cost reduction strategy introduced by the new mobile department head which may see the production of LG's handsets moved to Vietnam, where Samsung is as well. The orders to LG Display for OLED panels have been getting progressively smaller, as the company seeks to keep the inventory low, resulting in some shortages for the V50 model, for instance.

The share of LG Display screens in the company's own handset production portfolio has been about 30% so far, but slid to 20% this year, and Apple accounts for 85% of those orders, too, leaving very little for LG's own phones. In short, the Chinese from BOE can produce OLED panels cheaper and in larger quantities, and this is the simple reason why LG may be going with them instead of its own small OLED display production. When it comes to large OLEDs for TVs and the like, though, LG is still king.


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4 Comments

1. oldskool50 unregistered

LG can't compete with the mighty Samsung. They just don't have the money to invest like Samsung does.

2. foreverNOOB

Posts: 174; Member since: Jul 07, 2017

I'm curious on this, when it comes to big oled panels for TVs or monitors, LG can produced it more perfectly than Samsung but why didn't they just use that same technique to make small phone size oled. Or Lg and Samsung have secret agreement that prevents them both to cross the line of each other in the area of their expertise?? ( LG for big panel and Samsung for small panel)

3. shm224

Posts: 295; Member since: Mar 19, 2015

LG never competed with Samsung for mobile OLED display. Samsung's had over 90% market share past 10 years or so. BOE's OLED tech is stolen from Samsung. Do expect a bout of ip war if BOE ever steps out of their market in China.

4. P-YWS

Posts: 151; Member since: Aug 12, 2011

Do you have any proof that BOE's OLED tech was stolen from Samsung? Or, you were merely guessing?

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