[ET NEWS] LG Display is likely to turn profitable in its OLED business in the third quarter -- for the first time since it started the business five years ago, according to industry sources on Sept. 27.
Sources say the firm, the largest supplier of OLED TV panels that has a near monopoly globally, raised its supply prices in the second quarter, largely buoyed by the upbeat sales of OLED TVs. Especially, its key client LG Electronics that makes up more than 80 percent of the panel shipments, has also seen a price hike.
“LG Electronics has enjoyed some discounts compared to other TV makers like Sony. With the latest price hike, the average supply price seems to be almost balanced among its clients,” an industry source told ET News on condition of anonymity.
The panel price exceeded US$800 on average until early last year but the price continued to fall and is hovering at about US$600 recently. Industry tracker IHS Markit predicted LG Display has raised the price on average by 2.5 percent from US$695.50 to US$712.50 across 55- to 77-inch panels. Sources say another 2 percent to 3 percent price increase could come later this year.
“LG Display, as the only supplier of the large OLED panels, has been lowering the panel prices to attract more customers into the OLED TV market. Now the firm is seeking to raise profits,” said another source who also declined to be named. “When its Chinese plant starts production later next year, its profitability would further improve.”
By Bae Ok-jin (firstname.lastname@example.org)
This story was co-produced by ET News and The Investor. For any inquiries, please contact editor Lee Ji-yoon at email@example.com