LG Display will greatly increase the quantity of parts it supplies to China`s Xiaomi, which is emerging as a global smartphone super power, in 2015. LGD is planning to capitalize on Xiaomi as the foothold for expansion in the Chinese market by increasing the smartphone panels it supplies to Xiaomi by more than 4 times. The company also decided to strengthen its cooperation in mid-to-large displays, e.g. TVs and tablet PCs. Also, LGD is forecast to fiercely compete with Samsung Display for Xiaomi. Samsung is doing its best to find new buyers,

According to LG and industry insiders on December 25, LG Display will aim to supply more than 10 million 5-inch full HD LCD panels to Xiaomi in 2015. In 2014, LGD supplied about 2.3 million 5.5-inch HD LCD panels to 2 Xiaomi.

“As the products we are supplying to Xiaomi are low-priced general-purpose LCDs that are not highly profitable, there are differing views internally on whether we should increase our supplies to Xiaomi,” said an LG insider. “As Xiaomi adheres to a low-priced product strategy, but wants to use relatively premium displays and is trying hard to make inroads into the global market, however, we decided to further strengthen the cooperative relationship in 2015.”

LG Display is supplying not only displays for small smartphones, but also larger TV panels. As the 49-inch UHD TV (MiTV2), released last June, used the LG Display panel, LGD implanted the image of ‘a product that has good quality compared to its price’ in the mind of consumers. As Xiaomi seems poised to take an offensive position in the TV and tablet PC market next year, LG Display is thinking of it as an opportunity.

As Samsung Display is doing its utmost to increase buyers in the Chinese market to bounce back from its poor performance, however, it will not be an easy battle. A while ago, the executives of Xiaomi visited Samsung Display and discussed the supply of large panels.

An industry insider said, “Domestic display makers are expected to compete intensely with one another to wind orders from Xiaomi, but unlike in small displays, in large displays, existing customers like Samsung Electronics and LG Electronics will hold them in check, and thus they will not be able to increase the quantities bound for Xiaomi.”

Xiaomi sold 18.7 million smartphones last year, and aims to sell 60 million smartphones globally next year.

Sung Hyeon-hee | sunghh@etnews.com