It is no secret that Samsung’s earnings have been dwindling from the sale of smartphones – the new, large displays of the iPhone 6 and 6 Plus are attracting users like a new queen bee and Samsung’s efforts in China and India, once only challenged by the newcomers, have now overtaken them. Fortunately, for Samsung, their display and chip manufacturing are growing, not only for their own devices, but are being used by other manufacturers as well. Samsung is confident to the tune of $3.6 billion when it comes to their flexible OLED displays – read that as Samsung’s Galaxy Note Edge and possibly the upcoming Samsung Galaxy S6 Edge, to be announced at the beginning of March.
Samsung is investing in a new factory designed to produce flexible displays for smartphones and tablets – the ‘Edge’ design on a tablet might just be ‘The Next Big Thing’ – after the new Galaxy S6 Edge, of course. The plant should be operational in two years time and will make flexible displays for external clients as well…what better way to make up for their decreasing smartphone sales. Oh Sang-woo, analyst at Leading Investment & Securities said, “In the long run I think it’s possible for sales to expand to outside customers. These clients may include competitors seeking to play catch-up by using curved screens.”
This is really nothing new for Samsung, as they have always reinvested heavily in technology, new plants and expansion on a yearly basis – especially when it comes to displays and its semiconductor business. Not only is Samsung investing in the flexible OLED displays plant, but they are expected to build a new $15.6 billion chip factory starting early 2015, that should be completed in the second half of 2017. These large investments or expenditures will certainly cut into Samsung’s bottom line over the next two-three years, which will translate into lower dividends in the short run, but may pay larger future ones.
Flexible displays seem to be an up and coming staple for future devices – LG introduced us to their new LG G Flex 2 and users are anxiously awaiting its arrival. Even with a higher selling price, Samsung was surprised by the number of Galaxy Note Edges that are being sold – users tend to like something different, especially when it can help with their productivity and look cool at the same time. Please hook up with us on our Google+ Page and let us know if you like the new curved displays…as always, we would love to hear from you.