Katarzyna Petru
The production cost of 65-inch OLED panels has fallen by half since 2020, and the downward trend will continue. The market is entering a new phase as LCD panels with RGB LED backlighting also make a comeback.
13 years of waiting – and finally a breakthrough?
When the first OLED televisions hit the market, the industry assured that in the future their production would be cheaper than LCD. Thirteen years have passed, and consumers are still waiting. However, it now seems that the promises are beginning to be fulfilled.
Costs Halved in 5 Years
LG Display produces OLED panels in two factories: in Paju (South Korea) and in Guangzhou, China. The factory there is already two-thirds paid off (depreciated), which significantly lowers production costs.
In addition, there are further cost-cutting initiatives – the effects are clearly visible. In 2020, producing a 65-inch OLED panel cost about $1000. A year ago it was already $600, and this year, the value is expected to drop below $500. Further reductions are forecasted for 2026.
Production Costs for 65” OLED (estimates)
Year | Cost in USD | AUD | EUR | GBP | PLN |
|---|---|---|---|---|---|
2020 | $1000 | ~1530 | ~920 | ~790 | ~4300 |
2024 | $600 | ~920 | ~550 | ~475 | ~2580 |
2025 | <$500 | ~760 | ~460 | ~395 | ~2150 |
2026 | even lower | forecast of further decline |
(approximate conversions, based on average exchange rates: 1 USD ≈ 1.53 AUD / 0.92 EUR / 0.79 GBP / 4.30 PLN)
The Korean newspaper Biz Chosun reports that LG Display has focused on expanding production lines and improving efficiency in the last two to three years. The result? A 30% year-over-year reduction in costs. For 2026, the company is preparing additional cuts, including through a new design of the DDI (display driver IC) control circuit.
OLED vs. LCD – Is the Situation Turning Around?
LG Display is still struggling with profitability, so not all savings will immediately reach consumers. However, it is already evident that prices for large OLED TVs (77–83”) dropped significantly in 2025.
Interestingly, the production costs of OLED panels are starting to equal – and at times even be lower – than those of LCD panels with RGB LED backlighting.
– “The cost of the LED (RGB) lights that create the backlighting in such TVs is responsible for the majority of the panel price,” quotes Biz Chosun one of the industry sources. – “After accounting for drivers and electronics, it comes out to about 400–600 USD, which is similar to OLED, or even more expensive.”
Of course, traditional LCDs are still cheaper to produce, but if the trend continues, we could see a complete breakthrough in 5–10 years.
It seems that the year 2026 could be the first moment in history when OLED actually becomes more cost-effective to produce than advanced LCD. And that means real chances for even cheaper televisions in stores.
