LG launched its lowest-priced OLED TV ever this year, the A1, and has maintained the price of its hit LG C1 TVs low since then, notably for the smaller 48-inch variant. Besides this, the company has also launched various affordable products in India, too. This is due to LG Display’s new manufacturing facility in China, which has cut costs by 13-14 percent. It is expected that 65-inch models will see similar cost reductions in the future. Until 2020, the production cost of the Guangzhou (China) plant was higher than that of the Paju (South Korea) facility. On the other hand, LG Display reduced total costs at the Guangzhou facility by cutting depreciation, labor, overhead, and sales management expenditures. In the case of 48-inch products, China’s manufacturing costs are expected to be 13 to 14 percent lower than those in Korea.
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Since costs for the 48-inch and 55-inch OLED TVs have dropped significantly this year, 65-inch TVs remain a significant investment. Many of the best TVs are OLED models, but they’re a lot more expensive than your regular LED or old LCD panels. Features like better color accuracy and HDR support, make the LG OLED TVs an excellent choice.
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LG Display manufactures the panels for almost every OLED TV now on the market, therefore its panel costs are important even beyond its own TVs. As manufacturing costs fall, every OLED TV producer stands to win, either by adding more features for the same price or by passing on the savings. The same revolutionary production processes that made 48-inch and 83-inch OLED panels possible will soon make the first 97-inch OLED panels available — which would lead to the reinvention of luxury TVs for a lot of us.
The total OLED TV panel manufacturing in 2021 is estimated to be around 7 million, up from 4.4 million in 2020. This is also likely a component in cost savings, as economies of scale imply that the more you manufacture, the less it costs to make.
All of this seems to be looking good for LG, and for the other models of 2022.