|LG Display sets new record for OLED TV panel sales|
It is estimated that LG Display sold 1.79 million OLED TV panels in the second quarter. This is a new record for quarterly sales. In the industry, it is evaluated that LG Display has succeeded in business model innovation. LG Display has been promoting “OLED trend” three years ago. It was meant to secure the territory of OLED panels in the TV panel market, which is one color of LCD (liquid crystal display).
According to market research firm Omdia on the 27th, LG Display's sales of OLED TV panels in the second quarter of this year were 1792,000 units, nearly three times higher than in the second quarter of last year (650,000 units). Compared to the first quarter (1.51 million units), about 20% more units were sold. As of the first half of the year, OLED TV panel sales were 3.3 million units, which is equivalent to the annual OLED TV panel sales in 2019.
The sharp increase in OLED TV panel sales is due to the impact of retaliatory consumption due to COVID-19. As people spend more time indoors, consumers are more concerned about picture quality and eye health. OLED TV panels have about 50% less blue light (blue light), which causes eye fatigue and sleep disturbance, than LCDs.
The narrowing of the price gap with OLED TV panels as LCD TV panel prices soared is also considered one of the reasons for the increase in OLED panel demand. According to Omdia, the price of a 55-inch (55-inch diagonal) LCD TV panel surged from $138 last year to $229 in the second quarter of this year. On the other hand, the price of the same size OLED TV panel fell from $533 to $490. This is the result of lowering unit cost through process innovation.
The securities industry expects LG Display's OLED TV panel sales, which stood at 3 trillion won last year, will surge to 5 trillion won this year and 7 trillion won next year. An industry official said, "The operating profit of the OLED TV panel division is also expected to turn to the black from the third quarter." He predicted that "annual surplus will be possible from next year at the latest."
The market is shaking again.
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