So, Samsung Electronics has decided to spin off it’s money-hemoraging LCD TV business into a separate company to be called Samsung Display Corporation. The Samsung Board of Directors approved the move last night and the separate company will begin operating on April 1st.
Like most LCD-based HDTV companies out there, Samsung’s TV group has lost money – with 2011 estimates set at over $900 million. And, as you may have read, Sony also bailed out on its partnership with Samsung late last month making the losses totally Samsung’s for 2012. So, they had to make a move – either stop making HDTVs or spin it off into a separate company that has to stand on its own – a la VIZIO.
And, the market is near saturation as the transformation to HDTV, globally, is nearly complete. So, the future for standard LCD production is expected to decline – DisplaySearch recently issued a statement that claims at least an 8 percent decline by 2015.
So, what’s next for Samsung – the parent company? Well, the company’s putting all its eggs into the OLED (Organic Light Emitting Diode) displays basket – a market that is not only growing, but is also commanding high-dollar sales returns and will be at least $20 Billion by 2018.
Here’s the BBC story covering the move: http://www.bbc.co.uk/news/business-17093309