Can South Korea's Samsung Electronics' organic EL TV sweep the market?
South Korea's Samsung Electronics will split the LCD panel division on April 1, 2012 to accelerate the transformation from a loss-making LCD panel business to a new generation of organic EL TV business. The key to the popularity of organic EL TV is to achieve low cost, Samsung Electronics decided to take a risk.
The world ’s largest TV maker Samsung Electronics Co., Ltd. has taken a key step to popularize a new generation of organic EL (Electro Luminescence) TVs—split the LCD panel division and set up a new company with its wholly-funded company on April 1. "Samsung Display" (tentative name).
Samsung ’s LCD panel business suffered an operating loss of 220 billion won from October to December 2011. For the quarter, it has suffered losses for four consecutive quarters. Therefore, the company will transfer the production equipment of liquid crystal panels to a new generation of organic EL TVs to accelerate the improvement of revenue. It is also intended to merge "Samsung Mobile Display", which produces small and medium-sized LCD panels and organic EL panels for smartphones and tablet terminals, into the new company.
Samsung Electronics will purchase organic EL panels from the new company and start selling 55-inch organic EL TVs in 2012. Moreover, Samsung Electronics also plans to merge the new company with the LCD TV panel company "S-LCD". In January of this year, S-LCD changed the form of half-investment with Sony and became a wholly-owned subsidiary of Samsung Electronics.
Samsung Electronics will use the display as its axis to build its firm position as the world ’s largest TV manufacturer. However, Samsung Electronics may not be able to do so.
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