LG and Samsung will scale back display production in 2016 to prevent operating losses. The move is said to help their bottom line, and will help fight off Taiwanese and Chinese suppliers.
Both companies seem to be cutting larger displays for TVs, but will increase production on mobile displays. The huge contract they both received from Apple to make new iPhone displays will definitely help even out their profits.
The very aggressive Chinese suppliers also have Samsung and LG worried. A Samsung spokesperson said,
“We don’t believe the year 2016 will be good, the company needs contingency plans to deal with increasing risks.”
Chung Won-seok from Hi Investment weighed in on the issue and said they will never be able to beat the Chinese competitors prices. Also, pointing out that there is low demand for large OLED panels, and they have nothing to fill the void for the time being.
Source: Korea Times
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