The AMOLED LCD Wars Progress -4
LPL dropped another 2% on Friday, probably due to a report that LCD inventories are high. This will affect LG Display's near term business, but I continue to believe the company will be able to compete better than most. That will be important as LCD competition continues to ramp up. Samsung has just introduced its JS7200 television using nano-crystal technology to improve color replication, and Merck KGaA (some readers felt it was important to differentiate this German company from the American pharmaceutical one of the same name) has recently purchased similar technology. I continue to believe that AMOLED is the superior technology, and note that the projected prices of the JS7200, which is not available yet, are not that much cheaper than the constantly declining prices of already available AMOLED TVs, albeit of different resolutions. This opinion is supported by other recent news, such as Samsung rushing to mass produce the mirrors I mentioned previously, and more rumors of LG transitioning capacity to produce AMOLED mobile displays for Apple by 2018. Though the transition will be tricky, and prices need to be monitored carefully, the evidence continues to point toward a market transition that plays right into LGD's technology lead.