The premium TV market is entering a new phase of competition between OLED and RGB LED technologies. OLEDs have long been recognised for their superior picture quality, but RGB LED TVs from makers like Hisense, TCL, and Sony are starting to close the gap. According to Korean outlet Biz Chosun, OLED manufacturing costs are falling thanks to economies of scale and could drop further next year, while RGB LED panels remain costly in their early production stage. This shift could mean OLED TVs become more affordable for consumers sooner than expected.
First, let’s have a quick refresher on how these two display technologies differ and then understand how their production realities differ.
OLED TVs use self-lit pixels, so each pixel can switch on or off independently. RGB LED TVs, on the other hand, are LCD panels that rely on external light sources in the form of red, green, and blue LEDs for backlighting. Brands like TCL and Hisense have launched RGB LED models that improve on standard Mini LED TVs and have drawn praise for picture quality. Samsung and Sony have also showcased their versions.
However, RGB LED TVs are in the early stages of their production lifecycle and hence face associated challenges. The cost of LED chips, backlights, and driver circuits makes the panels expensive, with estimates around $400–$600, similar to OLED. The panels also have a complex structure, a high number of components, and production yields that are not yet fully stable. Ensuring uniform brightness and quality adds further cost.
Also Read: Sony Bravia 9 Mini LED Review – Best mini LED TV to rival OLEDs?
Meanwhile…
LG Display has steadily reduced the production cost of 65-inch OLED panels from $1,000 in 2020 to around $600 last year, with costs expected to fall below $500 this year. The costs can fall further in 2026, as LG’s OLED factories have benefited from expanded production lines, improved yields, and lower depreciation costs in China, making OLED production more efficient.
Over the past two to three years, LG Display has pursued production stabilisation and cost-cutting measures, too. Moreover, a recent design change to the display driver IC is expected to reduce costs further. These efforts have already helped lower prices for larger OLED TVs, such as 77- and 83-inch models.
With RGB LED still developing, OLED retains advantages in black levels, contrast, and sharpness, keeping it strong in the premium segment. Analysts expect OLED TV panel shipments to grow about 20% this year, and revenue share for TVs priced above $1,500 is forecast to exceed 50% next year.
OLED’s strong fundamentals now allow LG Display to generate significant profit. Kiwoom Securities analyst Kim So-won noted that OLED panels alone could generate ‘more than 1 trillion won in operating profit’, prompting an upward revision of LG Display’s earnings forecast.
For users, falling OLED production costs could lead to more affordable premium TVs in the near future. While RGB LED TVs from Chinese makers offer an alternative, OLED’s efficiency, cost advantage, and proven picture quality could appeal to current premium TV buyers.
The coming years will determine how RGB LED competes as the technology matures, but for now, OLED remains the leader in the premium TV market.
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