Samsung reportedly scraps OLED plant plans; Universal Display falls


The Nikkei reports Samsung (SSNLF) has scrapped plans to build an OLED TV plant due to yield challenges and pricing concerns. Universal Display (OLED -7.7%) shares aren't taking the news well.

Samsung, by far the world's biggest producer and (via its phone unit) consumer of OLED panels, is reportedly thinking of building a new plant to make small/mid-sized OLED panels for mobile devices. But it also likely won't release new OLED TV sets "for a while."

Samsung and LG have launched OLED sets that are thinner and lighter than LCD alternatives (owing to their lack of a backlight), and which have earned praise for their brightness and picture quality. But sky-high price tags have relegated the sets to niche status. DisplaySearch estimates only 4,400 sets were sold last year.

Sony and Panasonic called off an OLED TV JV last December.

Comments (5)
  • Esekla
    , contributor
    Comments (4657) | Send Message
     
    I commented on this a half hour ago in my article:

     

    http://seekingalpha.co...

     

    Samsung said as much in their latest report, but the wording here and in The Nikkei is something of a misinterpretation.
    5 May 2014, 02:25 PM Reply Like
  • sidney
    , contributor
    Comments (366) | Send Message
     
    They seemed to have overlooked the progress LG is making in TV vs Samsung, While SMD is faltering, LG is picking up steam. 70% is a magic number to hit on yield and LG is reaching that and lighting up full production at end of year. LG oled pricing lately is suggesting they have this in the bag. Samsung is left holding it. OLED will benefit from the competition between SMD and LG. LG will help boost revenue at 2H for oled emitters ramping up for their 8.5 go live. Selling OLED on SMD faltering while ignoring LG successes is hubris.
    5 May 2014, 03:47 PM Reply Like
  • sidney
    , contributor
    Comments (366) | Send Message
     
    Here is an update on Samsungs midsize tablet expansion for oled
    http://tinyurl.com/nwz...
    5 May 2014, 04:09 PM Reply Like
  • sherin999
    , contributor
    Comment (1) | Send Message
     
    sony as well doing the same. OLEDs dying ..?
    13 May 2014, 02:24 AM Reply Like
  • Esekla
    , contributor
    Comments (4657) | Send Message
     
    Quite the opposite, see this thread:

     

    http://seekingalpha.co...
    13 May 2014, 09:15 AM Reply Like
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