Reports indicate that Sony Corp (ADR) (NYSE:SNE) is gearing up to release an OLED television set for consumers in 2017. This was further confirmed by a subsidiary of LG Electronics Inc. (KRX:066570), LG Display Co Ltd. (ADR)(NYSE:LPL), which entered into a deal with Sony to supply Sony with OLED TV panels which would be unveiled at the Consumer Electronics Show. When contacted for a confirmation of the Sony OLED TV in 2017, LG Display would not divulge anything other than the standard corporate response of not commenting on rumors, innuendos, and speculation.
Sony is already enjoying some success in the premium end of TV sets with offerings such as the Z9D series. OLED TVs, however, have some advantages over current offerings as they have a far superior picture quality, a faster response time, and are also more power efficient. Sony has in the past announced a partnership with Panasonic to enter into a joint venture for the production of OLED television sets though nothing has materialized so far.
Parent company unhappy over Sony OLED TV in 2017
It is understood that LG Electronics wasn’t enthusiastic about selling OLED panels to its Japanese competitor in order for it to unveil a Sony OLED TV in 2017. However, LG Display had already committed to supplying the OLED panels to Sony and couldn’t back off the deal. Also, LG Display had taken up the offer because it wanted to increase revenues by netting more customers and also by raising the units it could sell.
And while Samsung Electronics Co Ltd (KRX:005930) is the biggest manufacturer of OLED displays in the world especially those used on mobile devices, it is LG which is the leader in manufacturing OLED displays used in making television sets. This is understood to be what made Sony choose it as the preferred supplier of the OLED display components necessary for launching a Sony OLED TV in 2017.
Sony went 0.04% up during Friday’s trading session to close at $28.06 per share. LG Electronics Inc. (KRX:066570) fell by 0.76% to close the day at 46,000 Korean won while LG Display Co Ltd. (ADR)(NYSE:LPL) remained unchanged during Friday’s trading session.
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