Recently, LG Electronics along with Sony and Panasonic, all OLED TV manufacturers are cutting prices for all-red TV. All-red TVs are expected to surge as high-end TV makers lower their sales prices by up to 40%. However, LG Display, which supplies the only OLED display panel in the world for the time being, is suffering from a sickness as it is under pressure to lower all panel prices following the recent decline in LCD panel prices.

According to industry sources on April 2, all-red TV companies such as LG Electronics, Sony and Panasonic have recently launched new products and have begun to increase sales by up to 40% compared to products launched last year. The price of all-red TV exceeded tens of thousands of won only a few years ago, but 55-inch products have recently fallen below KRW 3 million.

In fact, LG Electronics lowered the price of new OLED TV products by 20% this year. Sony also lowered its OLED TV new product series by 40% this year. LG Electronics` TV division`s OP margin is expected to reach 10% in 1Q due to falling all-red TV prices and sales growth.

However, LG Display is not pleased with the increase in all-red TV sales. LG Display is expected to record an operating loss of about 100 billion won for the first time in six years. This is because the LCD panel prices have been falling since last year and all of the red panel prices are under pressure. In March, the average price of LCD TV panels was $ 150, down 2.8% from $ 154 last month. The price fell from $ 213 in January to $ 200 in August of the same year. LG Display, which is earning 90% of its total sales from its LCD panel, hit a direct hit. We have invested in all-red panel production facilities since 2013 to lower the proportion of LCDs, but we have not been able to make a profit in the all-red panel business.

The number of TV manufacturers receiving all-red panels from LG Display increased to 15. However, it is reported that each maker is under pressure to lower panel prices as it is competing for price reduction to increase all-red TV market share.

"The panel price is determined by supply and demand," said LG Display official. "Demand is rising as the global TV market calls for all-red fires, but the amount of supply is limited, He said.

By Kim Eun silverkim@


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