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Greater investment in Samsung AMOLED screens affect the LCD panel market

Samsung has been investing in its technology of AMOLED screens since the beginning of Galaxy line. However, the company only incorporated its own panel in the more expensive models of smartphones and tablets. Now, according to data collected by Digitimes, South Korea intends to expand the manufacture of screens and also introduce these components in cheaper smartphones.

This change will affect the other panel makers in South Korea demanding components for the production of LCD screens. Samsung currently has partnership with ljin Display, ELK (Electro Luminescence Korea), Melfas, SMAC (Smart Mobile Application Company), Synopex and Taeyang Electronics. By reducing the use of this technology in their products cheaper, falling profits of these companies is expected to drop an average of $ 2 billion in 2015.

Just to give you an idea. In 2013, it was generated a $ 3.5 billion profit in the production of LCD screens, and Samsung a leading clients before the high amount of smartphones, tablets, and other products launched by the company in recent years. Now with studies in developing new flexible displays, Samsung wants to invest in expansion of factories so that it depends even less from other vendors.

We do not know which products the company plans to bring to market AMOLED screen, but it is expected that mobile phones more affordable (real average one thousand or less) are in Samsung’s plans. It is true that many prefer LCD screens, but South Korea has improved its panels each year, to considerably reduce the color saturation that has always been something criticized in the past.


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