As many of you know, LG is separated into a few different companies. There’s LG Electronics who makes many of the smartphones, tablets, TVs, and other products we use each day. There’s also LG Chem who makes batteries (and actually making batteries for Chevy’s Volt), and finally LG Display. And as you can tell by the name, they make displays, but not just for smartphones and tablets. LG Display has been leading the way along with Samsung, in making flexible OLED displays, and have been showcasing them on their LG G Flex series of smartphones. However, while LG does make these displays, there are components to these displays that come from other companies.
Previously, LG was using Japanese companies, but now are going to be switching over to Poongwon who is based in Korea. Thus lowering the costs of importing and lowering logistics to get the metal foil used in displays. The metal foil used by LG has suffered from low yields and high costs since the mid 2000s, and switching over to a local company will help lower costs for the company and increase their profit. This change will primarily affect their TV’s, LG thinks this would reduce costs for their large-sized OLED TVs. LG’s TV’s are some of their most profitable products that they sell (it’s the same for Samsung and
With this change over to Poongwon, LG expects that their revenues will increase from about KRW 8 billion in 2014, to about KRW 20 billion in 2016. This is all from having more supply given to LG. Thus making the company able to produce more TV’s and sell even more.
LG’s displays are some of the best in the industry. Although they do have some pretty stiff competition in Korea with Samsung and their AMOLED displays that they use on just about all of their products. LG’s TV’s do have great pictures, and their OLED displays for smartphones and tablets are getting better and better each and every year. With the decrease in cost for OLED displays, we may see more smartphones from LG come out with OLED displays. Which many wouldn’t be opposed to.