_LG lays out OLED signage strategy
LG Electronics (066570.KS) debuted its OLED signage portfolio yesterday, citing a focus on project based commercial applications that are customized to the application and customer. The company says it is in talks with several potential clients in the fashion industry and can develop displays based on the architecture needed by the client. The company showed a display of multiple curved 55”OLED displays connected together, and has developed a 200 unit seamless display for a project in Singapore.
LG expects to ship these panels by 3Q 2017, although prices were not discussed, and will include a 3 year warranty, with an expected lifetime of 45,590 hours, which translates to 6.9 years at 18 hours/day. LG has seen considerable success in the commercial display market, particularly in Taiwan, where it holds a number one 30% share, which, along with Australia, will be the 1st markets open to the new product line.
LG has been the champion of OLED TV since its rival Samsung Electronics bowed out of the technology for large screen TV production. Large OLED panels produced by LG Display have been the only source of displays for large OLED TV applications, but have been receiving strong interest from a number of Chinese TV brands, prompting LG Display to expand production capacity. While they expect to fill capacity through OLED TV sales growth for the next few years, custom B2B OLED project margins are less influenced by competition, as they are in the consumer retail TV market, and will help the OLED TV business at LG to move closer to actual profitability in 2017 or 2018.
LG expects to ship these panels by 3Q 2017, although prices were not discussed, and will include a 3 year warranty, with an expected lifetime of 45,590 hours, which translates to 6.9 years at 18 hours/day. LG has seen considerable success in the commercial display market, particularly in Taiwan, where it holds a number one 30% share, which, along with Australia, will be the 1st markets open to the new product line.
LG has been the champion of OLED TV since its rival Samsung Electronics bowed out of the technology for large screen TV production. Large OLED panels produced by LG Display have been the only source of displays for large OLED TV applications, but have been receiving strong interest from a number of Chinese TV brands, prompting LG Display to expand production capacity. While they expect to fill capacity through OLED TV sales growth for the next few years, custom B2B OLED project margins are less influenced by competition, as they are in the consumer retail TV market, and will help the OLED TV business at LG to move closer to actual profitability in 2017 or 2018.
Figure 3 - LG Custom Retail OLED Display Example - Source: LG
Figure 4 - OLED Capacity by Size - Source: SCMR LLC, OLED-A
Figure 5 - LG Display OLED Capacity - Source: SCMR LLC, OLED-A, Company Data
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