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Samsung may be gearing up to spin-out its LCD and OLED divisions

Samsung is reported to be wanting to reverse recent decline in profits and defend itselve from increasing global competition

23 Mar 2015 | Editor

According to various news websites there is growing speculation that Samsung Display is considering spinning-out its LCD and OLED business divisions again just three years since they were merged into a single business unit.

Samsung Electronics established Samsung Display in 2012 with its LCD business divided and absorbed Samsung Mobile Display including OLED panel business.

By late 2013 Samsung Display was subseqently integrated into a single business, the operating and marketing divisions were combined with the remit to build a single channel for consumer response and marketing campaign. Although the plan at the time appeared to be sound the subsequent performance failed to deliver the much anticipated results.

In 2014 Samsung Display posted operating profits of 60 billion won, fell into the red during Q3 and lost its market leadership to its biggest competitor - LG Display.

The under performing LCD business is responsible for pulled down the company's earnings when highly profitable OLED business was combined, leading to low morale and a less aggressive approach to acquire new clients.

There is a suggestion that Samsung will reduce headcount while investing in equipment development with the expectations of improving the company's products line up as it seeks to defend its market from Chinese competitors.


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