Although Samsung is widely recognized as a prominent TV manufacturer, it ceased producing OLED TVs in 2015, opting instead for QLED panels. These panels offer a comparable cost and quality to LCD panels.
Meanwhile, Samsung has been actively advancing its microLED technology, which is considered superior to OLED in terms of image quality, although it remains expensive and limited to larger screen sizes.
In a new development, Samsung appears to be seeking to extend the development time for microLED technology and intends to cater to the high-end market by reintroducing OLED TVs. But instead of producing its own OLED panels again, Samsung has decided to reach out to its biggest display maker rival, LG.
Reuters reports that Samsung and LG have entered into an agreement under which LG will supply Samsung with 2 million high-end OLED panels in 77 and 83-inch sizes in 2024. The supply is expected to increase to 3 million panels in 2025 and further to 5 million panels in 2026.
Presently, LG holds approximately 50% of the OLED TV market, while Sony accounts for 26%. It is worth noting that Sony also sources its panels from LG.
One possible reason for Samsung’s significant strategic shift could be the fierce competition from Chinese manufacturers in the LCD segment. Additionally, Samsung’s performance in the first quarter of 2023 may have influenced this decision.