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 dustbin of history. The latest report from the analytical company Omdia reveals the behind-the-scenes details that manufacturers are reluctant to speak about: the factories producing the panels are already practically paid off. This means that the barrier which kept prices high has just broken, and we are on the verge of the lowest prices for OLED screens the world has ever seen.
Financial breakthrough in LG and Samsung factories
According to Omdia, the depreciation of equipment for panel production is accelerating sharply. This is critical, as in the technology industry, the cost of machinery accounts for as much as 1/3 (one third) of the total production cost of each screen, from small displays in smartphones to large televisions. By 2028, the amount of fully "paid off" production capacity worldwide will nearly double, from 160 to 300 million square metres.
OLED TVs and monitors: Time for "clean profit"
Things are getting particularly interesting 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 reduce operational costs and allow the television and monitor business to achieve sustained profitability" – the report states.
For consumers, this means one thing: manufacturers will no longer need to "add" the factory loan instalment to each television. They can lower prices to compete for customers and still make a profit.
Exception: New Arrivals for Laptops
The only question mark remains the new factories Gen 8.6 RGB OLED, being built for laptops and tablets. They will only start to pay off after 2030, so we will have to wait a bit longer for extreme price occasions there. However, in the world of televisions and monitors, the coming two years promise to be the best time for upgrading equipment in history.
Source: Omdia
