OLED TVs continue to increase their market share in the over USD 1500 category as both capacity and yields increase. At the current time LGD is selling everything they can make. Now, the total manufacturing cost of a 55-inch OLED ultra-high definition (UHD) TV panel stood at USD 582 per unit in the second quarter of 2017, a 55 percent drop from when it was first introduced in the first quarter of 2015. They project the cost declining to USD 242 by the first quarter of 2021. The manufacturing cost of a 55-inch OLED UHD TV panel has narrowed to 2.5 times that of an LCD TV panel with the same specifications, compared to 4.3 times back in the first quarter of 2015. IHS appears not to have used a QD film based LED but rather just an LED backlight. When the 55-inch UHD OLED TV panel costs were 2.5 times more than LCD TV panel, the gap in the material costs was just 1.7 times. Factors other than direct material costs, such as production yield, utilization rate, appreciation expenses and substrate size, do actually matter, IHS Markit said. The total manufacturing cost difference will be reduced to 1.8 times from the current 2.5 times, when the yield is increased to a level similar to that of LCD panels. “However, due to the depreciation cost of OLED, there are limitations in cost reduction from just improving yield,” Kim said. “When the depreciation is completed, a 31 percent reduction in cost can be expected from now.” ¬– OLED Musings