LG's strategy comes as competition in the LCD TV market becomes increasingly complicated by the emergence of many Chinese companies producing LCD screens, which will eventually affect them like Samsung - which was forced to put this technology aside to focus on other technologies such as OLED.
OLED TV will be the area LG focuses on the most after abandoning LCD TV.
To do this, LG has begun to spin off its manufacturing plants, selling them to other companies with larger market shares, including one of its main competitors in the Asian market, TCL. The move would be similar to Samsung, which also sold its display factory to TCL for $1.08 billion in 2021 after seeing declining LCD sales.
Samsung has stopped making these displays in 2022 and LG is considering a similar exit as it is not profitable enough to be considered profitable. LG wants to move towards more advanced technologies as it cannot compete with Chinese companies in such situations.
Focusing on the latest technologies will be good for LG and Samsung as more and more companies start looking to grab as much LCD market share as possible. Both Korean companies have a sizable share of the global OLED market, which puts them in the best strategic position to make immediate changes without having to invest too much money.
LG and Samsung currently account for 74.2% of global sales related to OLED displays. Korean companies' TV display revenue even accounted for 96.1% of global revenue last year, so the new strategy will allow them to consolidate in this area.
Source: https://thanhnien.vn/lg-tu-bo-man-hinh-lcd-de-tap-trung-vao-oled-185240511083312993.htm
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