Katarzyna Petru
For years we have heard that OLED must be expensive because “production is complicated and requires billion-dollar investments”. Well, that argument has just landed in the rubbish bin of history. The latest report from the analytical firm Omdia reveals the behind-the-scenes information that manufacturers are reluctant to speak about out loud: the factories that produce the panels are practically paid off. This means that the barrier that kept prices high has just broken, and we are on the verge of the lowest prices for OLED screens that the world has ever seen.
Financial breakthrough in LG and Samsung factories
According to Omdia, the depreciation of equipment for panel production is rapidly accelerating. This is crucial because in the technology industry, the cost of machines accounts for as much as 1/3 (one third) of the total production cost of each screen. From a small display in a smartphone to huge televisions. By 2028, the amount of fully "paid off" production capacity worldwide will increase nearly twofold from 160 to 300 million square metres.
OLED TV and monitors: Time for “clean profit”
The most interesting developments are occurring in the large screen segment. Charles Annis from Omdia points out that Korean factories producing WOLED (from LG) and QD-OLED (from Samsung) will achieve nearly full amortisation by 2028.
“This will significantly lower operational costs and allow the TV and monitor business to achieve sustainable profitability” – we read in the report.
For consumers, this means one thing: manufacturers will no longer have to “add” a factory loan installment to the price of each television. They can lower prices to compete for customers and still make a profit.
Exception: Laptop News
The only question mark remains the new factories Gen 8.6 RGB OLED, built with laptops and tablets in mind. They will only start to pay off after 2030, so we will have to wait a bit longer for extreme price opportunities there. However, in the world of TVs and monitors, the upcoming two years are shaping up to be the best time for upgrading equipment in history.
Source: Omdia
