Yes, according to the latest rumors coming from Korea, Samsung will stop making LCD screens in the very near future. Which means that they are going to completely close the production plants for this type of panel. Specifically, they will do it in a few weeks. However, this It does not mean that they are going to leave the business of manufacturing monitors and televisions.yes Since they are among the most lucrative for the multinational. Let’s see how this decision by Samsung affects us PC users.
We usually call under the generic name of LCD screen any technology of what a few years ago we called flat screens. We did this to differentiate them from the tube ones. However, in recent years new technologies have appeared that far outperform the first LCDs. We refer to much more advanced technologies that allow greater performance and image quality. That is, the classic TN, IPS or VA panels could have their days numbered and the first to make the decision is Samsung. Why has the South Korean multinational made this decision and how does it affect the market for computer monitors?
Why will Samsung stop making LCD panels?
One of the problems that large companies have is when competition appears that can cut the costs of a product and with it the final price. This causes margins to plummet and the product is no longer attractive. So the only way to survive ends up being to sell products with higher benefits. The objective is clear, to take advantage of the higher performance and efficiency of a product to be able to sell it more expensively and have higher margins.
So that, Samsung will close its LCD panel production plants in June 2022. After this, it will transfer its workers to the plants that produce more advanced technologies such as OLED or QD. The goal of the South Korean multinational is none other than to abandon a business that has been engulfed by producers in China and Taiwan and is no longer as profitable as before. For every $100 paid for an LCD panel in January 2014, less than $40 is paid today. Which means a significant drop in benefits.
Today Samsung is a supplier of screens to a large number of manufacturers and assemblers of monitors, laptops and even mobile phones. However, considering the dominance of Asian manufacturers in the market and that things like the screen are usually among the things that are cut in terms of costs. We believe that we will still see LCD panels despite the fact that Samsung stops manufacturing them. So technologies that OLED will be predominant in high-end equipment to show their superior capabilities. So it is expected that the rest of the manufacturers, especially the Japanese, carry out the same process as Samsung for the same reasons that we have explained to you.
