Samsung, the Korean company behind the Galaxy and Nexus smartphones and the Galaxy tablet, is set to spin off its LCD display unit into a new business. This separate entity, which will likely be called Samsung Display Co., may later merge with Samsung Mobile Display, which is currently behind the OLED (organic light-emitting diode) screens that are on the cutting edge of technology.
Why the split? It seems that Samsung wants to be more flexible in its research and development of displays to catch up with the curve on production of OLED technology. Experts predict the technology may be ready for use in large television screens by 2015, so don’t go looking for an online coupon anytime soon. Having a separate display company that is working on all types of displays will give Samsung the ability to make business decisions related to displays more quickly and respond specifically to consumer needs as they relate to displays.
If you haven’t heard about OLED technology yet, know that this revolution in display technology will help create more immersive, detailed visualizations. These light-emitting diodes are much smaller than LCDs so you will finally be able to see the super-thin and light televisions that people desire. This will make them easier to install and transport, in addition to helping them blend in more with the surrounding home decor. Plus, because the OLEDs are so thin, companies like Samsung might even be able to make curved televisions, which opens up a whole new realm of design possibilities.
In a market flooded with companies racing toward being able to sell OLED televisions for a reasonable price, the spin off and future merger will likely help Samsung keep pace. Not only will they be able to compete with the usual rivals of Sharp and LG, they also may be able to stay ahead of Apple and Google as these companies try to get into the television market as well. Specialization generally helps with focus, and having Samsung Display Co. separate from the parent company will probably be a good thing.
Although Samsung announced the split a week ago, it won’t go into effect until April 1, presuming shareholders approve the decision. There’s not much sense in failing to approve it because it will make Samsung more effective overall in keeping up with technology trends and making quick decisions in the face of new data. Expect to see Samsung Display Co. as a major player in the coming years, especially if it merges with Samsung Mobile Display and focuses on OLED technology.
In the same way that LCD screens helped bring reliable high definition televisions into wide adoption in homes across the country, OLED screens will allow consumers to incorporate HD screens into their homes more seamlessly. Imagine a home where, instead of a massive television at the center of an entertainment center, a picture window can be transformed into an HD screen, giving families all the benefits of an intrusive screen without marring the view. That future doesn’t seem so far away.
