tech2 News Staff

This morning many of us woke up to the news that Samsung is planning to split its OLED Display business from LCD. The Korean Times said that post separation the company's majority workforce has joined the OLED business. The move was to get rid off the unprofitable LCD business and focuss on OLED.

However, Samsung has issued an official statement refuting the report. The statement reads:

The Korea Times’ article about ‘Samsung spins off OLED business’ is incorrect. Samsung Display has never spun off OLED business and will try its best to develop and produce LCD and OLED products to enrich human-beings environment and improve the well-being of society as one of the world-leading display companies.

Though the company refuses splitting its display businesses, many believe that there is no denying Samsung may consider such a move in the future. Samsung Display reported an operating loss of around £177 million in the first quarter and mainly due to decline in LCD earnings. So, it wasn't surprising when the Korean Times report stated that the company is looking at an exit strategy for LCDs.

Citing a Samsung Display spokesperson, the report further added that the company is looking at alternatives to combat poor demand of conventional LCD displays, which are becoming unprofitable due to increasing low-cost Chinese competitors. Samsung Electronics has 84.8 percent stake in Samsung Display. It should be noted that it recently bagged a deal to supply its OLED displays for new iPhones, likely to be launched next year.