LG intends to focus on production of displays using a new technology. This step should keep the competitors at bay on the market of television equipment and monitors. This refers to OLED technology.
OLED is an organic light-emitting diode display and it’s expected the company will be able to manufacture these displays at lower costs than liquid crystal displays (LCD).
The South Korean company announced its plans on investment into the development of OLED in the amount of 10 trln won (about $ 8.47 billion) till 2018. According to Reuters, the means will be directed to the developments in interoperation of OLED with certain product types including not only TV sets but also mobile devices and wearables. Also LG is going to analyze whether it’s possible to use OLED technology in other areas, particularly in a vehicle production.
Moreover, LG won’t disregard a traditional liquid crystal displays’ (LCD) production: the company will concentrate on creation of premium and luxury class segment.
In July LG company announced its intention to invest 1.05 trln won ($ 908 million) into a sixth generation flexible OLED display production line within a new line E5, which will be assembled in South Korea. The line will fit not only TV sets but also mobile devices and wearables as well as could be used in industrial conditions. The new line is scheduled to begin mass production in the first half of 2017.
A range of manufacturers, among which is Samsung, consider OLED as too expensive technology for mass market. However if LG achieves decrease in production costs of OLED, it’ll become a positive driver for future sales of the company. OLED display production should help the company remain at the top of the mobile display game in the foreseeable future and LG products to become a mainstream.
As reported by IHS DisplaySearch research firm, the market of flexible OLED devices will gradually grow from $ 3.5 billion in 2015 to $ 4.8 billion by 2021.
According to the assessment of DisplaySearch, the global OLED-displays’ market size will grow to $ 28.3 billion by 2022 comparing to $ 8.7 billion in 2014.
LG Display reported operating profit of 488 billion won for the second quarter of 2015 that exceeded expectations of experts. Nevertheless, last quarter growth rates of revenue of the company have decreased from 26% to 12%.