In an effort to move away from its struggling LCD business, Apple supplier Samsung has separated its OLED (organic light-emitting diode) unit, reports the Korea Times. This could be an exit strategy for LCDs, which are no longer profitable, a company official said.
Samsung Display reported a 270 billion operating loss during the first quarter, because its LCD segment is struggling. The company is said to be shutting down some of its LCD lines and has begun talks with (yet unidentified) Chinese firms to sell others. Another possible plan – revealed by a company official – is that Samsung Electronics might buy the LCD business to keep Samsung’s TV business running.
Apple is rumoured to be switching to OLED displays as early as next year. Nomura Securities informed its clients that OLED will be accounting for a third of all smartphone displays within two years.
Today’s report once again corroborated an earlier rumour claiming Samsung Display had secured a deal with Apple to provide a share of the OLED displays for the iPhone that will launch in late 2017. LG Display will supply OLEDs for the second batch of Apple devices, the Korea Times report says.