Samsung To Spin-Off LCD Business

Samsung is considering spinning-off its LCD panel business after reporting huge losses of $669m last year for its display panel business.

Samsung are currently the world’s largest TV and flat-screen maker, and this news comes in just mere weeks after Samsung announced their huge new 2012 line up of LCD HDTVs, which are already gaining a huge amount of attention.

Samsung say they are going to focus on new display technology, such as new OLED displays which are used in many smart phones. At this years CES, along they many LCD models, Samsung also announced a new 55-inch OLED HDTV.

The blame in pinned on falling prices due to oversupply along with increasing competition from cheaper Chinese firms. While demand has been down, all manufacturers continued to pump out too many new units.

Samsung UN60ES8000

Samsung UN60ES8000

“We are considering various options to strengthen the competitiveness of the LCD business. Spinning it off and merging it with Samsung Mobile Display is one of the options but no decision has been made yet,” Samsung said on Wednesday.

Growth in the LCD sector continues to grow, the OLED sector is expected to boom in the coming few years. We can expect to see Samsung’s first large OLED HDTVs coming our way later this year, and can expect the prices to decrease as times goes by. New OLED HDTVs offer a higher quality image, are even slimmer, and use less power compared to LCD HDTVs.

Update: Samsung has now confirmed this spin-off. And “Samsung Display” will launch on April 1st 2012, with $6.5 billion behind it.

Samsung Display on April 1st, 2012 with $6.6 billion in its coffers.

Via BBC News & FT.Com

Posted under: Samsung

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