According to industry sources, LG Display's OLED business may be profitable in the third quarter, and this will be the first profit since the start of business five years ago.
According to sources, LG Display increased its supply price in the second quarter as the world's largest supplier of OLED TV panels, which has almost monopolized its global business, and was largely influenced by the aggressive sales of OLED TVs. In particular, LG Electronics, which is its main customer and accounts for 80% of its panel shipments, also raised its product price.
An industry source who asked not to be named said: "LG Electronics has enjoyed some benefits compared to other TV manufacturers such as Sony. But with the recent price increases, the supply prices of many of its customers seem to have reached a balance."
At the beginning of last year, the average panel price exceeded $800, and the price continued to fall, eventually stabilizing around $600. Market research firm IHS Markit expects LG Display to increase its price on the 55-77-inch panel by an average of 2.5% from $695.50 to $712.50. Sources said LG Display will raise prices by 2% to 3% later this year.
Another source who asked not to be named said: "As the sole supplier of large OLED panels, LG Display has been reducing the price of OLED panels to attract more customers. Now the company plans to increase profits. With the company in China The factory will start production later this year and its profitability will increase further."