According to Reuters, LG will supply high-end 77-inch and 83-inch OLED panels to Samsung to compete against Chinese brands.
For the first time, LG will supply OLED panels for high-end TVs to Samsung , a rival company.
According to Reuters , this agreement will allow the South Korean manufacturer to become profitable and be able to be more efficient against Chinese competitors that are currently reputing themselves in the market.
LG and Samsung team up
LG Display aims to supply 2 million units next year and increase shipments to 3 million and 5 million units in the following years.
The first models shipped will be 77-inch and 83-inch white OLED TV panels.
For Samsung , the deal highlights how it looks to expand into higher-end organic light-emitting diode ( OLED ) TVs as competition at the lower end with Chinese suppliers increases. OLED panels cost almost five times more than liquid crystal display (LCD) panels.
benefits for all
LG has grabbed more than 50% of the OLED TV market share with Sony at 26% and Samsung at just 6%, according to market research by Omdia.
With this agreement, Samsung could overtake Sony as the second largest provider of OLED TVs globally.
While Samsung has dominated the global TV market for 17 years in a row, it has faced stiff competition from Chinese rivals with cheaper LCD TVs.