LG Found A Way To Make OLED TVs For Less: Have China Do It

LG managed to cut the manufacturing cost of its OLED TV panels by a significant margin. Will this lead to cheaper yet quality TVs for consumers?

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LG managed to cut the manufacturing cost of its OLED TV panels by quite a significant margin with the help of its factory in China. Its cost-cutting efforts are said to affect the production of an even wider range of TVs in the future, which could possibly create a positive ripple effect for consumers. LG is known for many things, from its range of smart appliances to high-end OLED TVs and even its tech-infused face mask.

Aside from producing various innovative smartphone models over the years, the South Korean tech giant is also known as one of the biggest suppliers of LCD and OLED display panels. LG Display, a subsidiary of LG, has been operating for over 20 years now, supplying display panels for renowned tech companies such as Apple, ASUS, Dell, Philips, and Sony. With the arrival of LG’s rumored 97-inch TV reportedly just around the corner, it makes sense for LG to find means of ensuring the cost of its panels won’t surpass the retail price of its TVs.

It seems like LG’s already taking measures for just that, and it all starts with its latest LG Display factory which opened last year in Guangzhou, China. According to flatpanelshd, its Chinese factory was able to lower the cost of its 48-inch displays by up to 14%. This was achieved by minimizing its cost and expenses in terms of overhead, labor, depreciation, and sales management. While the results affected only certain displays, the Display Supply Chain Consultants, a group that specializes in display-based supply chains, believes the same will also apply to its 65-inch displays soon, as well as double LG’s display panel sales from 2020. In addition, LG’s Guangzhou factory is said to be capable of manufacturing various display panel sizes at reduced production costs.

How LG Display’s Cost-cutting Can Affect Consumers

LG might have folded in the smartphone game, but its impact in the broader consumer electronics spectrum is still significant. That said, many well-known brands like Sony and Panasonic still rely on LG for their smart TV displays, and LG’s cost-cutting measures should allow it to meet larger demands faster and more efficiently. This also helps hasten the mass production of its much larger 80 to 100-inch TVs in the process, possibly allowing them to hit shelves sooner than anticipated.

While this might not exactly guarantee that consumers will soon be getting bigger TV screens for cheaper prices, it could likely increase supplies for larger TV sets. The more supply of such bigger-screen TVs appearing on the market relative to its consumer demand, the better the likelihood of their prices becoming more affordable. Of course, consumers shouldn’t hold their breath much in terms of drastic price reductions any time soon, especially since LG is still very much capable of charging customers $100,000 for a TV.

Link Source : https://screenrant.com/lg-tv-cost-reduction-pricing/