LG Display believes that although companies such as Apple and Samsung have begun to use OLED screens on their own mobile phones, a significant portion of LG Display's revenue next year will still come from sales of LCD screens. Yoon Soo-young, director of research and development at LG Display, said , Mass production of smartphone screens is very difficult.
The strength of LG Display is the production of large-size OLEDs, such as TV screens, and their competitor Samsung is more adept at producing small-size OLEDs, which are the screens used in smart phones. Samsung has now locked orders for all high-end iPhone screens. LG The displayed OLED project has never brought profits to the company. The OLED screen is brighter and more flexible in shape because of its brighter display, so the selling price is higher.
Yoon said: 'I can hear the call for price reduction. We still need to earn profits through LCD. OLED also needs a lot of investment, we need to make money through the LCD business to support the investment required by OLED.'
LG has already obtained orders for OLED TV screens from Sony, Panasonic and Skyworth, and their negotiations with Apple have yet to make any progress. The company expects OLED revenue generated by 2020 will account for 40% of total revenue. The remaining 60% comes from the LCD screen.