Sunday, 22 Sep 2019

LG Electronics and LG Display continue to work to overcome differences

Rumours abound that cracks in their relationship are surfacing as the TV business of LG Electronics slows down, and each point the finger of blame at the other for the decline

18 Sep 2015 | Editor

According to news reports from The Korea Economic Daily the relationship between LG Electronics and LG Display been a close one, and are tied more closely than is the norm for ordinary relationship between affiliates.

This mutual cooperation has allowed the two companies to achieve win-win growth. The most notable cooperation has been the development and commercial launch of OLED TV - the first of its kind in the world.

The relationship has enabled LG Display to supply LCDs for as much as 70% of TVs and smartphones produced by LG Electronics. Today, however, there is a sign of cracks in their relationship. As the TV business of LG Electronics is slowing down, there are rumours that they blame each other for the declining performance of the TV business.

LG Electronics is reported to be striving to cut the price of OLED TVs. In order to position OLED TVs as an alternative to LCD TVs - currently accounts for 99% of the global TV market - it is needed to reduce the price of OLED TVs. With this in mind, LG Electronics has been putting pressure on LG Display to supply more OLED panels and lower prices.

LG Display is unhappy with this situation saying that it could double or triple its profits if it can sell OLED panels for use in digital signage or car dashboards rather than simply for TVs.

www.lgdisplay.com    www.lg.com    english.hankyung.com   

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