Sony has expanded its partnership with LG for OLED display panels from TVs to smartphones, according to latest reports and people familiar with LG Display’s internal situations. LG is said to supply flexible OLED panels to Sony smartphones after supplying to Sony TVs.
The move comes after Sony has seen big profits from large OLED TV model with LG Display. Sony has not just increased its earnings, but also made its presence felt in the premium segment. Sony’s first half of 2017 net profit ran to 211.7 billion yen which is the company’s the highest from the past 10 years. This made Sony more confident and made the company raise its annual TV sales target to 12.5 million units from 12 million units.
However, the smartphone biz continuing its decline. However, it ranks second in Japan next to Apple. In the first half of 2017, Sony has captured a market share of 14.9%, beating Samsung Electronics (8.2%), Sharp (7.3%) and Fujitsu (8.9%). The company has been struggling to show the same level of success in the rest of the world. Observing the need for smartphones in advanced markets and the reach it has, Sony is not giving up on the smartphone business just yet.
On the other hand, with Sony, LG display can attract and fetch new customers. It is essential for the company to acquire customers as it will begin mass production of flexible OLEDs at 15,000 sheets per month from Q3 in Paju E6 production facilities following those at Gumi E5.
Commenting on the same, an Industry executive said:
Already Sony is asking around in order to secure OLED engineers. Sony is expected to implant its success factors in the TV business in its smartphone business and develop products such as foldable phones.