Foreign Media: China's LCD Display Is Developing Rapidly, LG Is Forced To Transform OLED
Blaze Display Technology Co., Ltd. | Updated: Nov 27, 2018
Earlier this spring, LG CEO (CEO) Han Xiangfan smashed an LCD (liquid crystal display) in front of 1000 employees. From that moment on, LG has made up its mind that it can't keep the LCD to bring to LG. Now, it is time to reform!
According to a report by Reuters on September 13, LG Display is currently in a difficult position. Just a year ago, LG also took the lead in TV and smartphones with this LCD display. However, in 2018, LG clearly underestimated the market situation. In the face of Chinese competitors' pursuit, the LCD panel price dropped sharply in early 2018. LG changed from last year's profitability to this year's serious loss. This makes LG start. Not expected.
LG's revenue is mainly created by LCD monitors. Before the iPhone X, Apple's iPhone has always been an LCD screen, which means that Apple has been a big customer of LG's LCD panel, but with Apple's launch of OLED iPhone. In addition, the "blocking" of China's BOE LCD panel suppliers has caused LG to lose the name of the number one supplier of LCD displays over 9 inches. According to IHS Markit, as of January 2017, BOE LCD monitor shipments accounted for 22.3% of total LCD shipments, surpassing 21.6% of LG displays. This is the first time that Chinese display manufacturers have won the first place.Although LG ate a big loss in front of the LCD, but LG also began to realize the crisis, began to develop OLED (organic light-emitting diode), OLED display does not require backlight, can present more natural colors, less power, can Folding, the screen of the iPhone X is the folded OLED screen, but the OLED screen is too expensive, which is also recognized.
According to reports, LG currently puts all its prices on OLEDs. LG said the company can raise $17.6 billion in the next three years to invest in OLED business. In addition, LG is optimistic about the prospects of OLED. LG predicts that by 2020, the revenue generated by OLED will reach 40%.
At present, LG can't find a better way out than OLED. An LG executive also said: "OLED is the answer and solution to our crisis, so in addition to tightening the belt and pushing the OLED. Besides, there is no other way."