LG Display Co., Ltd. LPL, the South Korean electronics giant, has decided to escalate its investments for grabbing a lion’s share of the untapped organic light-emitting diode (‘OLED’) market. On Monday, the company stated its plan of shelling out KRW 10 trillion (around $8.5 billion) through 2018 for the manufacture of OLED displays.

The company will make available these OLEDs for all forms of large and small products such as TVs, smartphones, cars and wearables. Further, LG Display will focus on expanding the application of OLEDs to signage and automobiles. Apart from this, this leading liquid crystal display (‘LCD’) maker will spend on enhancing its premium LCD products offering.

LG Display – An OLED Fan

LG Display has always been the biggest proponent of OLED and presently offers OLEDs for the Apple Watch of Apple Inc. AAPL. In the last reported quarter, the company unveiled its OLED market expansion and customer base augmentation plan. In particular, LG Display will boost the production of its premium offerings such as Ultra HD, Advanced In-Cell Touch, and large-sized display segments.

Additionally, in order to enhance its cost competitiveness, the company will transform its exiting LCD product line to OLED line during the second half of 2015. Alongside, LG Displays will advance its OLED product line-up and perform proactive marketing activity to spread OLED recognition.   

Moreover, in July, the company had proposed KRW1.05 trillion investments in a 6th Generation flexible OLED display production line in Gyeongbuk Province, Korea.

Looking Ahead

Vaunted as the next-gen display technology, OLED boasts of improved brightness, contrast and efficiency as compared to LCD or Plasma. However, OLED is said to highly expensive to be used for manufacturing TVs and thus Samsung Electronics Co. Ltd. SSNLF – the TV maker giant – reduced its exposure to OLED TVs way back.

Presently, LG display and its sister concern LG Electronics are the only major players that are carrying the technology for TVs on their strong shoulders amid improving OLED market prospects. As per IHS DisplaySearch, a global market research firm, the flexible OLED market is expected to thrive from 2015, with projected sales to increase to $4.8 billion by 2021 from $3.5 billion in 2015. We believe on the back of such vigorous and dedicated efforts, LG Display can break all odds and emerge as a leader in the OLED market.

LG display currently carries a Zacks Rank #4 (Sell). Alps Electric Co. Ltd. APELY is a better-ranked stock in the same industry with a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
APPLE INC (AAPL): Free Stock Analysis Report
 
LG DISPLAY-ADR (LPL): Free Stock Analysis Report
 
ALPS ELECTRIC (APELY): Free Stock Analysis Report
 
SAMSUNG ELE LTD (SSNLF): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research