Rumors from South Korea that Samsung Electronics might be about to swallow its pride and buy OLED TV panels from LG Display and launch its first regular OLED TVs this year refuse to go away.
In the latest report from The Elec, it’s said that Samsung will now make a decision on whether or not to launch its first W-OLED TVs this month, based on the outcome of its ongoing negotiations with LG Display.
The two companies have reportedly been negotiating over the price of the W-OLED display panels for several months but until now have not been able to strike a deal that satisfies everyone. It was previously reported that Samsung is trying to procure its W-OLED displays at a cheaper price than what other companies, including LG Electronics, pay for them.
Anonymous sources with knowledge of the negotiations say that while the talks could be extended beyond May, any further delay would mean Samsung is unable to launch its first W-OLED TVs this year. That’s because once it gets a hold of the display panels, it still needs time to manufacture the TVs, set up its logistics to ship them around the world, and create its marketing materials.
The report adds that Samsung would ideally like to wrap up the negotiations with LG Display this month so that it will have time to launch its first W-OLED TVs before the FIFA World Cup 2022 finals in Qatar kicks off in late November. Samsung anticipates that if it can have the new TVs ready to launch by then, it will benefit from a lucrative TV sales boom that traditionally accompanies big sporting events.
However, should the companies fail to agree on a price before the end of the month, the report adds that Samsung would no longer be in a rush, given that global demand for TVs has declined somewhat since the beginning of the Russia - Ukraine war.
Still, The Elec said Samsung is quietly optimistic that it can convince LG Display to drop its asking prices and sell it the W-OLED panels at the price point it’s asking for. LG Display is said to be desperate for new customers for its OLED panels, having been squeezed out of the market for LCD display panels by Chinese rivals. With LG Display now planning to exit the LCD business, it is said to be under pressure to grow its revenue from its OLED display unit.
LG Display will also be mindful of the threat posed to its OLED business by the positive reception to Samsung Display’s new QD-OLED TV displays, which many say are superior to W-OLED.
