TV businesses of Samsung, LG face mounting pressure from rising LCD panel prices
Models promote Samsung Electronics' Micro RGB TV at KES 2026 trade show at Coex exhibition hall in southern Seoul, Oct. 13. Courtesy of Samsung Electronics
Samsung Electronics and LG Electronics are expected to face growing pressure on their TV businesses, as rising prices of Chinese-made LCD panels drive up production costs, particularly for low- and mid-range TVs.
According to market tracker Omdia, the cash cost of a 65-inch LCD TV open cell is projected to rise from $112 in 2025 to $116.80 this year and $124.55 in 2027, as higher component and material prices increase manufacturing costs. An open cell refers to an LCD panel before the backlight and other components are assembled into a complete display module.
Omdia noted that three Chinese panel makers — CSOT, HKC and BOE — sent official letters to their clients outlining plans to raise prices for some panels starting in September or the fourth quarter.
According to another market tracker, TrendForce, LCD panel prices have remained flat, with 55-inch and 65-inch panels holding steady at $123 and $173, respectively, in October and November. However, Omdia expects LCD TV panel makers to successfully raise prices in December as “rising costs approach a tipping point.”
LG Electronics said during its third-quarter earnings conference call last month that LCD panel prices are expected to face greater upward pressure in the first quarter of next year. It added that “rising costs could put further pressure on profitability in the low- and mid-range TV segments, where it is difficult to pass higher costs on to consumers.”
LG Electronics' Micro RGB Evo TV / Courtesy of LG Electronics
The price trends are expected to weigh on both companies, as they rely on Chinese suppliers for LCD panels following Samsung Display's exit from the LCD business in 2022 and LG Display's withdrawal last year.
Samsung Electronics' TV and home appliance business posted an operating loss of 200 billion won in the third quarter, widening from approximately 100 billion won a year earlier and 10 billion won in the previous quarter.
Samsung Electronics plans to improve profitability by expanding sales of premium OLED TVs, but LCD panels remain a key component of its TV business, as the company relies heavily on LCD technology across its product lineup, including its QLED and Neo QLED TVs.
Omdia reports showed that Samsung Electronics is expected to procure 35.8 million LCD TV panels this year, while its OLED TV shipments are projected to reach 2.31 million units, highlighting the company's continued reliance on LCD technology.
LG Electronics' TV business returned to profitability in the third quarter, posting an operating profit of 146.7 billion won, while its OLED TV shipments are also believed to be higher than that of Samsung Electronics.
According to Omdia, however, LG Electronics is expected to source approximately 18.7 million LCD panels, or 94 percent of its estimated total procurement of 19.9 million panels this year, from Chinese suppliers, leaving the company heavily exposed to rising panel prices.