Will LG Electronics replace LGD with BOE as its OLED supplier?

According to a new report from Korea, LG Electronics is in talks with China-based BOE to supply OLED panels for future smartphones -and replace LGE's current supplier - it's sister company LG Display.

LG V50 ThinQ 5G photo

The report suggests two reasons for LG's talk with BOE. First is LG's drive to cut costs as its mobile phone business is losing massive amounts of money. The second reason is that LG Display cannot supply enough panels for LG Electronics as it still struggles with low production yields.

Interestingly the report suggests that LG Electronics is also placing small orders to make sure its inventories remain low. This strategy has drawbacks - and indeed recently there was a supply shortage for LG's 50 ThinQ smartphone - which is reportedly selling well.

If this report is true, this is great news for BOE, who's been enjoying stronger OLED sales compared to LG Display. LGD, meanwhile, is struggling to find customers for its smartphone displays, both LCDs and OLEDs.

Posted: Jul 06,2019 by Ron Mertens