Samsung Loses Ground In Medium And Large Display Market

As a business, Samsung Electronics have a habit of entering a given market and working their way up to be the market leader occupying the number one spot, or at the very least in the top three. Samsung have a massive advertising budget to support their products, which whilst they may not be the best of breed, are certainly competitive. As a business, Samsung produce all manner of products from wearable technology all of the way up to shipping. Much of their business is related to technology and today's story concerns the manufacturing and sales of medium and larger sized LCD panels, as used in larger tablets, Chromebooks, laptops, monitors and larger displays.

Sales and market share data for display panels has just been released by market research company, HIS, which shows the South Korean electronics giant, Samsung, is losing market share compared with this time last year. LG Display remains a solid performer and indeed has held the number one spot in the above-9-inch display panel market for over six years now. Looking at this segment, the latest data shows that LG Display commanded over 24% of the market in this size of panels, ahead of China-based BOW at 17%, with Taiwan-based AUO (16%) and Innolux (15%) hitting third and fourth spots respectively. Samsumg Display has dropped to fifth place with 14.5% market share, down from 19% for the same period in 2015. It has performed somewhat better in the large LCD panel market, but here Samsung have also lost market share, dropping to third place.

The reason for Samsung Display's drop in market share is being blamed on "a decrease in display production yield rates," which reading between the lines implies that Samsung's production costs are high, so the product is uncompetitive. Samsung is working to improve (reduce) production costs by decreasing the number of processing masks and reducing the thickness of glass substrates, so as to make its product more competitive. This could fuel a resurgence in the coming twelve months but at the same time, it is believed that the company is planning to withdraw from the market to instead concentrate on AMOLED and flexible display panels. Demand for large monitor and notebook screens is seen to be reducing and Samsung does not want to concentrate its efforts into a shrinking market: we have seen Samsung Display shut or sell off five out of eight LCD panel production lines in the last year.

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About the Author

David Steele

Senior Staff Writer
I grew up with 8-bit computers and moved into PDAs in my professional life, using a number of devices from early Windows CE clamshells and later. Today, my main devices are a Nexus 5X, a Sony Xperia Z Tablet and a coffee cup.
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