Samsung Electronics Switches Business Strategy from AMOLED Production to LCD
Home » LED Industry News » LED Panel Light News » Samsung Electronics Switches Business Strategy from AMOLED Production to LCD

In order to avoid saturation of the high-end smartphone market and increase market penetration in India and China, Samsung Display will reduce AMOLED panels and increase LCD panel production in 2014. Samsung Electronics wants to turn their focus to mid-market LED handsets in 2014, but this change in business strategy will have an impact on Samsung Display’s business performance.

“We have to increase the supply of cheaper LCD panels instead of OLED panels with higher added value due to Samsung Electronics’ business strategy,” said Samsung Display, adding, “Although the supply volume might become larger than before, it is almost sure that we cannot avoid a drop in profitability.”

The average price for 3.1 inch and higher OLED panels produced by Samsung Display at the end of 3Q was US $44.6, significantly higher than US $16.48 for LCD panels. LCD profitability is four to five times higher than that of OLED, according to Business Korea.

Samsung Display announced earlier this month that the company has integrated their OLED and LCD divisions. “To respond to the rapidly changing market environment, as well as to proactively cope with the changes in management environment, we decided to shift toward an integrated system,” said a Samsung Display official.

According to a report in Business Korea, Samsung Display mainly focused on AMOLED panel production with Samsung Electronic their main client, accounting for over 60 percent of its gross sales. “Besides, Samsung Electronics has recently demanded that the supply price of AMOLED panels be cut by at least 10%, although we cannot reveal the exact number,” an official at Samsung Display added.

Category: LED Industry News,LED Panel Light News   |   Tags:
Chat with us using:       

Other Items in this category

Epistar and FOREPI Complete Official Merge

GE Lighting and Pont de Louysse: Improving the Gastronomic Experience with Light

Japan’s New Technology Upgrades OLED Panels Resolution to 500 ppi

GE Lighting Prescribes LED Lighting Solution for Davao Medical School Foundation

San Francisco Int’l Airport Transforms Terminal with MaxLite Lighting Fixtures

Philips Luminous Textile Installation Enriches the Reception of Iconic Building in London

Lucibel Becomes a Lighting Supplier for PSA PEUGEOT CITROËN Group Car Showrooms

Osram Lights Up Sao Paulo Stadium for World Cup 2014 in Brazil