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Samsung explores options for LCD unit amid OLED shift

updated 12:55 pm EST, Tue February 14, 2012

Samsung won't confirm rumors of LCD team spinout

Samsung answered rumors that it might split off its LCD division. Representative James Chung wouldn't confirm or deny the talk to Reuters, saying only that the company was "internally reviewing various options." Nothing had been locked in, he explained.

Although it has had successes in LCDs for small and large tablets, as well as smartphones, the company section has been a drag on business as mid-sized, nine-inch tablets and notebooks haven't done wellin the market. TVs have faced their own pressure as Taiwainese and mainland Chinese companies cut primarily into the low end of its business. It recently cut its deal with Sony, in part as Sony no longer found that it made economic sense.

Some talk has existed of Samsung completely integrating its primarily OLED-focused group, Samsung Mobile Display, with the rest of the company. The organic displays now form a staple of its business and are not only in its high-end smartphones but also its Super OLED TV.

An exit from LCDs would have a major impact on Samsung's customers. Along with itself, Samsung is known to be a manufacturer for Apple's iPad and iPhone displays, supplementing production from at least LG Display. Apple could transfer production, but might also have to consider a technology switch if Samsung were to back out without an alternative. OLED is only just getting to the level where it's cost-effective in more than smartphone sizes, such as in the Galaxy Tab 7.7.

by MacNN Staff



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