IT SEEMS it’s not just the Japanese LCD manufacturers like Sharp and Sony who are suffering from low demand: South Korea-based Samsung has announced it will spin off its loss-making LCD business.
In 2011, Samsung’s LCD division lost US$891 million. This is a far cry from Sony’s loss of US$2.2 billion, but a loss nonetheless.
The two companies had a joint LCD production venture, but Sony terminated it at the end of 2011.
The new company will be named Samsung Display, to start operations 1 April 2012. This may include the Mobile Display venture, which makes organic light-emitting diode (OLED panels).
The OLED market is currently booming due to their use in smartphones and tablets, and it’s possible that Samsung may be able to stimulate demand for OLED television screens, but only if they are able to use the technology cost-effectively on large screens.
There is generally a lack in demand for LCD televisions, partly because of economic concerns, and also because of a lack of compelling LCD technology and a perceived stagnation in development. Chinese manufacturers are also eating into the Japanese and Korean LCD share.