Samsung Display asking supply chains to cut pricing by 30%
Siu Han, Taipei; Alex Wolfgram, DIGITIMES [Monday 17 November 2014]
Samsung Display is asking supply chains including backlighting makers to reduce pricing for components by as much as 30% during the fourth quarter of 2014 as the company aims to drop overall pricing for small- to medium-size applications.
The company is making new efforts to panel pricing in order to spur growth in its small- to medium-size panel segment as well as to provide Samsung Electronics with lower-priced solutions. Samsung Electronics has seen its smartphone market share drop and is adjusting its strategy going into 2015, which includes providing price competitive handsets for the smartphone segment.
Supply chains are now seeing increased pressure to report reduced pricing and Samsung Display is also reportedly considering adjusting its supply chain structure by bringing in new makers to keep overall costs down.
The move comes following news that stated Samsung Display is also slashing pricing for the OLED technology in order to expand its customer base and make the technology more prevalent in the market.
Such efforts have attracted new customers including Motorola Mobility and Oppo in addition to Dell and Lenovo who are all developing Samsung Display OLED technology either in smartphones or notebooks, said industry sources, adding that Samsung has been able to keep yields higher.
The effects of Samsung's new requirements are likely to reflect in makers' performances throughout the end of 2014 and going into the first quarter of 2015 when the company aims that OLED panel shipments will rebound.
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