Previously Japanese consumer electronics companies like Sony and Panasonic have reported heavy losses on their LCD business due to heavy competition from their South Korean counterparts Samsung and LG. One of the key areas the Japanese companies could not compete was price and it looks like Samsung itself is now facing similar problems with the increasing competition from low-cost Chinese manufacturers.
Samsung is not the only one stuck in this loss making boat as; LG has also been consistently reporting losses on the LCD business. Analysts believe that a spin-off of the LCD business will make sense for Samsung as it allow the company to focus more on its OLED display technology, but there is no clarity on this issue as in December Samsung acquired Sony’s share of its S-LCD joint venture for $940 million.
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