February 15 news, according to technology website CNET reported that Samsung Electronics said today that due to its continuous loss of LCD LCD business, is considering splitting it into an independent company to strengthen the competitiveness of the business. Samsung said that the LCD business is currently at a loss due to the oversupply. Samsung spokesman Nam Ki-yung said that the company is looking for various options to enhance the competitiveness of the LCD business, but it has not yet made a final decision.
In 2011, despite Samsung’s strong performance in the global HDTV market, its LCD business’s operating loss reached nearly US$900 million. In the United States, Samsung and Vizio are among the top two LCD monitors and hold a significant market share.
Compared to Samsung, Sony’s TV business has suffered losses for 10 consecutive years. Sony has just sold its 50% stake in the S-LCD display panel joint venture to Samsung. Some investors have said that Sony’s ultimate solution is to spin off or sell TV business, but so far, Sony has been reluctant to do so. Sony's new CEO Hirai Hirai stated that he will do his best to save the TV business.
Even if Samsung splits its LCD business, this does not mean that Samsung will abandon the HDTV market. Samsung can still obtain display panels from the new split company and shift its focus to future OLED TV technology.
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