Samsung signs deal to buy LG OLED panels 

The fight is over! A Samsung had to sign an agreement to purchase panels OLED da LG. Now, the LG will become the panel provider OLED for Samsung; it is estimated that more than 10 million units will be moved in the coming years for the production of new TVs OLED of brand.

Now, the Samsung will have to buy panels OLED - from English, Organic Light-Emitting Diode, which translates to Organic Diode Emissor de Luz, in Portuguese, in which the pixels act as light emitters, providing a more vivid image, with even brighter light tones, and vice versa for the dark ones – directly from its competitor to produce new tvs OLED.

Understand this unprecedented agreement between the giants

For Samsung, this new agreement is an admission of defeat, as it is the first time in the company's history that it has been forced to turn to a competitor in order to assemble its products. It is worth noting that the agreement came to light after years of rumors. (firework.com)  

It is due to the fact that it stopped making its own TVs. OLED eight years ago, in an erroneous bet that the market would not yet be ready for HD TVs, which at that time did not justify the high production cost associated with the product.

This slip was expensive for the manufacturer, who at that moment decided to invest in lower technology panels QLED - in English, Quantum Dot Light-Emitting Diode, translated to Light Emitting Quantum Dot Diode, that is, it makes use of quantum dots on a screen together with light emitting diodes to generate the image – a variant between LCD e LED that doesn't come close to the quality level of the OLED. 

In this match, the OLEDs proved much better, going on to dominate the high-end TV market. So from now on, she's going to buy panels OLED white 77 and 83 inches direct from LG, under an agreement that, in the hopes of the South Korean, will allow it to compete with its staunch competitors coming from China.

The blow was a big one for Samsung

According to Reuters, LG will provide 2 million panels OLED for Samsung next year, while in the following years that number will rise to 3 and then 5 million in 2025 and 2026. The portal Om Day put his finger on the wound Samsung, pointing out that the manufacturer was well below its rivals, with a mere 6% of sales of devices that use the most advanced technology.

Already Sony and LG enjoyed a success many times greater than her. A LG grabbed more than half of the market, while Sony took just over 25%. To the LG, the agreement with Samsung came at a good time, as the LG Display group admitted to a drop in buying interest for TVs and lower-than-expected sales for devices OLED. 

But it wasn't all bad, was it?

Even for herself Samsung this contract came in handy after yet another disastrous quarter due to lower demand for semiconductors and falling numbers of chips of memory produced. 

The manufacturer, which in the previous seventeen consecutive years was the leader in the TV market, ironically ended up appealing to its local competitors in order to be able to face Chinese rivals, who, with their cheaper televisions and technology LCD not as advanced as OLED, they tripped her worthy of a red card.       

Check out more about the OLED TV market and technology in general:

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Sources: OLED info, Om Day, Reuters, The Verge [1] And [2]

Text proofread by: Pedro Bomfim (16 / 05 / 23)