Korean companies continue to promote OLED technology, by offering a wide range of base plate sizes and increased resolution.
LG has difficulty with OLED technology
The senior official of the company said that to Chinese media last day. First, they will expand the OLED panel size to 48 inches by 2020, currently at least 55 inches. According to the sales strategy, the company will put the 48, 55, 65 and 77 inch models in 4K resolution, while the largest 88 inch model will increase to 8K. They explained that with a large size, a higher resolution is needed to increase the pixel density, keeping the image smooth.
The bigger the screen size, the higher the resolution
A 48-inch 4K will have a pixel density (ppi) of 91.8 ppi and is harder to manufacture than the 55-inch type. The density will decrease when the resolution remains the same and increase in size, 55 inches 80.1 ppi, 65 inches 67.8 ppi and 77 inches is 57.2 ppi. The higher the number of ppi, the harder it is for the control panel to operate the pixels, because it has to increase the number of transistors according to the number of pixels. At 88 inches, the density is 100 ppi. Expected this summer, the company will launch the OL9 Z9 8K, the end of the year is R9 scroll screen.
LG Display's problem is currently a high cost of wallpaper, which makes OLED TVs difficult to compete on price. IHS Markit estimates the average price of a 4K OLED is 2,333 USD. This level is higher than QD-LCD type (first launched in 2013 by Sony, by 2017 Samsung was renamed to "QLED" – counterweight to OLED), price of 1,991 USD has the same resolution. However, LG representatives said they did not tend to reduce the price of OLED panels to compete for market share. This can affect profits.
8K OLED TVs will be released this summer
Meanwhile, Korean electronics firms also need to try to improve their image in front of many Chinese customers. LG Display's reputation is not very good, mainly because its technology level is underestimated than its compatriot Samsung. They used OLED panels for Xiaomi and Huawei on smartphones. After that the product complained a lot about display quality, even defective. The company tried to win Huawei P30 series orders, but then lost it to BOE and Samsung.
However, in the large OLED segment, they do not have direct competitors. According to LG representatives, the company is confident that in 2019 it will sell 400,000 OLED panels to Chinese companies. Next year, the figure is expected to exceed 1 million mark. There have been a number of companies like Hisense, Konka, Changhong, … buy panels from LG. Sales from the Chinese market account for less than 10% of total OLED sales, and forecast when the company attracts more orders, the rate will increase to 15%. LG also aims to deliver 4 million OLED panels this year, the next year is 7 million.