According to the Korea Times, the Korean electronics giant is reducing its investment in the LCD division as Samsung shifts its focus to the OLED and plastic flexible display business. Due to the global economic uncertainty, the purchase of consumer products has slowed down, and the inventory of retail channels has increased, and the supply of the global LCD panel industry remains high. As the world's largest flat panel display manufacturer, Samsung has adjusted its business.
An anonymous person in Samsung said: "The real problem is that the major TV markets such as the US are still sluggish. This situation is far worse than the expectations of panel makers. In contrast, tablet demand is on the rise, and this market demand will be further presented next year. Explosive growth."
A senior executive of the Samsung contractor said: "Since the LCD panel industry is near full saturation, Samsung and its largest competitor LG Display are expected to reduce investment in LCD panels in southern China. The reason is simple, LCD panels are no longer a capable The field of cash flow."
As Samsung no longer invests more money in large-size LCD production, the display giant has also accelerated the conversion of existing TV LCD panel production lines to produce panels that are more suitable for tablets. Samsung plans to inject more funds into small and medium-sized, large-size OLED screen production.
According to documents submitted by Samsung to the Korea Stock Exchange, Samsung’s investment in OLED and LCD displays reached 3.7 trillion won in the first nine months of this year. In January of this year, Samsung said that it plans to invest 6.6 trillion won in display production this year. Samsung's investment in major display production will reach 6 trillion won next year.
According to Samsung’s third-quarter earnings report, due to strong smartphone sales and increased demand for display panels, the company’s net profit in the third quarter reached a record 6.565 trillion won (about $6 billion), compared with the same period last year. The 3.442 trillion won increased by 91%. A piece of financial report on the mobile phone shows that it accounts for almost two-thirds of the total profit. Samsung still has industry-leading market profitability in the TV market, and display panel business such as OLED has turned a profit in the third quarter.
According to relevant industry insiders, Samsung has maintained its number one position in the global market for five consecutive years since it became the first global LCD TV market in the third quarter of 2006. However, the strong position of Samsung TV in the international market has not continued to China. This time Samsung Electronics will focus on the OLED screen, not only to increase the competitiveness of mobile phones, but also accelerate the time-to-market of Samsung OLED TVs when OLED technology advances.
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