It's no secret that LG has been fond of OLED screens as of late, but the company is now proving that it's committed to those organic displays for the long haul. It's investing the equivalent of $8.5 billion into developing OLED technology over the next three years for everything from TVs to cars to wearables. LG only describes this as a bid to "pioneer this untapped OLED market" and "keep the competitors at bay," but it's not hard to see a few reasons why it'd pour cash into this relatively exotic technology -- and it's not all about one-upping Samsung. The move is certainly necessary for cars and wearables, where flexible OLED is important for putting displays on less-than-flat surfaces. However, LG is also doing this to resist the race-to-the-bottom trend in screen pricing, especially in the TV space. Like 3D and 4K, OLED gives LG a reason to ask a premium for that giant TV or banana-shaped smartphone -- it doesn't have to compete as much on price. That effect will only last for so long -- OLED TV prices have fallen rapidly in the past few years -- but it could keep LG ahead of the pack (or at least, near the front) for a little while longer.
SOURCE: Bloomberg
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