Why LG Electronics uses Chinese BOE panels instead of LGD for rollable phones?

The’rollable phone’ that LG Electronics unveiled at’CES 2021′ on the 11th. (Photo = LG Electronics)

[이데일리TV 김종호 기자] Is attracting great attention by introducing the world’s first rollable phone at’CES 2021′, the world’s largest home appliance exhibition on the 11th. However, as LG Electronics is known to have used the display panel of China’s BOE rather than its rollable phone, attention is also drawn to the background of this choice. The industry believes that LG Electronics has joined hands with Chinese company BOE, considering the price aspect as a top priority.

Earlier, LG Electronics unveiled its rollable phone for the first time through the CES 2021 press conference, which opened online. This product, which is targeted for release in the first half of this year, has a 6.8-inch display like a normal smartphone, but if you open the rolled screen, it can be used like a small tablet PC. This is possible because a flexible organic light-emitting diode (OLED) display that can be folded or bent is used instead of a conventional liquid crystal display (LCD).

However, it is known that LG Electronics decided to supply this display panel, which is the core of the rollable phone, from BOE, a Chinese display company, not from LG Display, which is the same subsidiary. LG Display has previously accumulated know-how on related technologies by supplying large flexible OLED display panels to’LG Signature R’, the world’s first rollable TV launched by LG Electronics at the end of last year. In addition, it has recently secured small and medium-sized flexible OLED display technology that can be used for smartphones. However, LG Electronics decided to join hands with BOE, not LG Display.

The industry believes that LG Electronics chose BOE over LG Display, considering the price aspect as the top priority. LG Electronics’ MC division, which is in charge of smartphones, is recording losses for 23 consecutive quarters until the fourth quarter of last year. It has been making no profits for almost six years. This rollable phone is dominated by the evaluation that it sees as a relief pitcher and the final number of matches for the reversal of LG Electronics’ smartphone business. Cost reduction is essential in order to maximize profits by increasing sales volume, but it is an analysis that in order to lower the sale price of rollable phones to the mid-two million won range, BOE panels, which are cheaper than LG Display panels, would have to be selected. In the end, it was a strategy to maximize profit creation.

An official in the industry said, “No matter how innovative products, consumers don’t look for them when the price is high. “LG Electronics considered these points to consider several ways to lower the price of the rollable phone,” he said. “It seems that the display panel, which is a key component, has also been selected from this perspective.” “LG Electronics has successfully released a rollable TV, but unlike TVs, smartphones have to be more durable as they have to be carried.” “It remains to be seen how much LG Electronics will improve its technology completion for the remaining period to solve problems such as durability. Will” he added.

.Source