Samsung signs deal to buy OLED TV panels from LG

According to Theverge , LG Display will supply high-end 77-inch and 83-inch OLED panels to Samsung based on a deal that could help the company gain profits amid fierce competition for LCD panels from Chinese rivals.

Samsung has accepted failure in developing QLED TVs

This is the first time Samsung has sourced OLED panels from its Korean rival after years of rumors. It is also a major admission of defeat for Samsung, which stopped making OLED TVs in 2015, citing high panel costs and miscalculating that the market wasn’t ready for such high-end TVs. Instead, Samsung focused on QLED TVs, a cheaper, lower-quality variant of LED LCD. Meanwhile, OLED TVs dominate the high-end market.

Last year, Samsung returned to OLED TVs by introducing its first QD-OLED TV. The company also supplied OLED panels for Samsung's first QD-OLED TV. A recent report from market research firm Omdia said LG had captured more than 50% of the OLED TV market, while Sony had 26% and Samsung just 6%.

In the new deal with LG Display, Samsung will order 2 million OLED panels from its rival in 2024, then 3 million in 2025 and 5 million in 2026. The new deal is welcome news for LG Display after the company admitted to "declining demand" for TVs and lower-than-expected OLED TV panel sales.

For Samsung, it's also good news after a poor quarter due to weaker semiconductor demand and reduced memory chip production. While Samsung has dominated the global TV market for 17 straight years, it has faced fierce competition from Chinese rivals with cheaper LCD TVs. Now, Samsung hopes to make higher profits in the long-overlooked large-size OLED TV segment.

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