SEOUL – LG Display, a leading innovator in display technology, announced on February 22nd that its organic light-emitting diode (OLED) products accounted for 55% of its total sales in 2024, with the proportion reaching a record high of 60% in the fourth quarter. This achievement underscores the company's successful strategy of focusing on OLED technology to drive growth.
The OLED TV market is expected to continue its expansion in 2025, presenting further opportunities for LG Display. Market research firm Omdia forecasts that OLED TV shipments will reach an all-time high of 6.59 million units this year, contrasting with the stagnant demand in the overall TV market. Notably, North America and Western Europe, regions with high acceptance of premium products, are projected to see sales increases of 31% and 12%, respectively, from 2021 levels by 2025.
LG Display, a pioneer in OLED TV mass production since 2013, has been continuously innovating in technology and cost reduction to solidify its position in the premium TV market. The company recently unveiled its 4th-generation OLED TV panel, boasting an industry-leading brightness of 4000 nits. This new panel not only enhances brightness but also significantly improves energy efficiency, making it ideal for implementing power-intensive artificial intelligence (AI) technologies.
In addition to expanding sales through increased OLED adoption, LG Display is actively pursuing operational efficiency and cost innovation to improve profitability. The depreciation of some of its smartphone OLED lines ended in late 2024, and the depreciation of some large OLED lines is also expected to end in the second half of 2025, which will significantly enhance its cost competitiveness.
According to Omdia, the manufacturing cost gap between OLED panels and liquid crystal display (LCD) panels is gradually narrowing, driven by improved OLED panel yields and cost reductions from the end of depreciation. Omdia predicts that the manufacturing cost gap will narrow to 1.6 times when OLED line depreciation ends.
Beyond reducing depreciation costs, which account for a significant portion of expenses, LG Display is also implementing efficient production and sales strategies linked to actual demand, as well as continuous cost innovation efforts.
An LG Display official stated, "Despite persistent uncertainties in the external environment and market volatility, the company has significantly improved its performance in 2024, reducing its losses by approximately 2 trillion won compared to 2023. We aim to achieve annual profitability in 2025 and establish a stable profit structure."
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