LG and Samsung battle it out for the OLED boom
Published: 23 December, 2009
READ MORE: South Korea | Samsung | LG Electronics | Display | Handset
OLED displays are one of the most rapidly growing areas of the electronics market, and smartphone screens are a particularly strong driver. The two Korean giants are engaged in a war to dominate this field, and LG Electronics is reported to be forming a company dedicated to managing licenses and royalties for its patents in this area.
According to the Korea IT Times, LG OLED will be jointly financed by three LG units - LG Electronics, LG Display and LG Chem - and will be unveiled next week. This is a sign of the intensifying battle with Samsung, which formed its own specialized division, Samsung Mobile Display, to focus on OLED, back in January. One of the key competitive edges for Samsung's cellphone business this year has been its leadership in bright AMOLED screens.
LG is building up its own armory though. It recently acquired Eastman Kodak's OLED business and intellectual property, also entering into a cross-licensing agreement with the US firm, which gives it access to further patents. These Kodak patents are also likely to be managed within the new LG OLED IPR portfolio, and the unit will then sign sharing deals with other LG businesses.
In its latest quarterly OLED forecast, analysts at DisplaySearch reported that worldwide revenues for the technology broke all records in the third quarter, rising 31% compared to the second quarter, to reach $252m. The main driver was demand in high end cellphones, with the analysts particularly crediting Samsung's aggressive promotion of the benefits of the AMOLED variant.
Samsung has a strong lead in OLED overall, and a huge 73% share in AMOLED, trailed by RiT with 12%. LG will start production of AMOLED displays for televisions and phones early next year. "While the mobile phone industry continues to suffer as a result of the economy, Samsung's marketing initiatives have propelled high end AMOLED mobile phone demand to new heights," commented DisplaySearch research director Hiroshi Hayase. However, PMOLED was static, because of a shift from clamshell phones to those with larger screens. The older technology sees its main expansion opportunity in automotive.
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