On Again Off Again On Again
The debate over whether Samsung Electronics (005930.KS) will buy OLED TV panels from rival LG Display (LPL) continues with the most recent ‘information’ coming from The Elec, a South Korean Tech rag that reports that the two companies have agreed on price and volumes, although the sets using the WOLED displays will not be released until June at the earliest, later than originally planned. While the story goes that Samsung’s Business Support Group, the top of the decision tree at Samsung, approved the purchase late last year, the company is now looking at the contract “with a working-level perspective” (whatever that means) and that is causing the delay in product release, which was why Samsung did not inform its global distributors of its plans and discuss marketing for the OLED TV product at CES, which it had originally intended.
Where this gets even more opaque is that Samsung is said to have agreed to buy the panels at a price that is the same as that offered to LG Electronics (066570.KS), LG Display’s parent, despite the fact that a recent story in the same paper indicated that the delay was due to Samsung’s unwillingness to accept LG Display’s panel pricing, which was said to be at a discount to that of LG Electronics. It is hard to imagine that Samsung would have agreed to the higher price without some other incentive, as the number of units (2m) seems to have remained the same, which is why we put little credence in such stories, especially as they seem to change weekly. All in, if such a deal were to be had, Samsung Electronics is expected to ship ~1.5m of the 2m units in 2022, along with .5m QD/OLED TVs, and ~3m Mini-LED/QD sets, as much of its premium TV line.
Where this gets even more opaque is that Samsung is said to have agreed to buy the panels at a price that is the same as that offered to LG Electronics (066570.KS), LG Display’s parent, despite the fact that a recent story in the same paper indicated that the delay was due to Samsung’s unwillingness to accept LG Display’s panel pricing, which was said to be at a discount to that of LG Electronics. It is hard to imagine that Samsung would have agreed to the higher price without some other incentive, as the number of units (2m) seems to have remained the same, which is why we put little credence in such stories, especially as they seem to change weekly. All in, if such a deal were to be had, Samsung Electronics is expected to ship ~1.5m of the 2m units in 2022, along with .5m QD/OLED TVs, and ~3m Mini-LED/QD sets, as much of its premium TV line.
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