Increased inventory, Samsung business focus will shift to OLED

Recently, South Korean media reported that due to the fact that the supply of LCD panels in the world is far greater than the demand, inventory has increased. Samsung Electronics has reduced its investment in the LCD sector and gradually shifted its business focus to OLED and flexible plastic displays.

An anonymous Samsung source said: “The real problem is that the major TV markets such as the United States are still sluggish. This situation is far worse than the expectations of panel makers. In contrast, the demand for tablet PCs is increasing, and the market demand will be further presented next year. Explosive growth."

According to Samsung’s third-quarter earnings report, the company’s net profit in the third quarter reached a record high of 6.655 trillion won (about US$6 billion) due to strong smartphone sales and increased demand for display panels. The same period of 3.442 trillion won increased by 91%. As for a mobile phone, it shows that it accounts for almost two-thirds of the total profit. Samsung still has industry-leading market profitability in the TV market, and OLED and other display panel businesses have also turned around in the third quarter.

It can be seen that Samsung's advantages in smart phones and display panels have brought about significant growth, but considering that the investment in LCD panels needs to be more scientific and reasonable in order to get rich returns, and Samsung's inventory structure has changed, so Samsung should It will re-adjust the business development, accelerate the existing TV LCD panel production line to produce panels that are more suitable for tablet PCs, and plans to inject more funds into the production of small, medium-sized and large-size OLED screens.

Related industry sources said that since the first quarter of 2006 to become the world's largest LCD TV share, Samsung has maintained its global market share for the fifth consecutive year. However, the strong position of Samsung TV in the international market did not extend to China. This time Samsung Electronics will focus on the OLED screen, not only to increase the competitiveness of mobile phones, but also to accelerate the time-to-market of Samsung OLED TVs when OLED technology advances.