Published in News

Samsung leans on chips and panel division

by on10 February 2015


Needs more beer money

Samsung's components businesses is finding itself under pressure to pick up the slack and secure external customers for chips and display panels and might even start flogging them to rival mobile companies.

According to Reuters the reason for this is that the Smartphone industry is tanking and the only one making any money out of it is Apple -- and even it is suffering a bit.

Samsung Display has begun supplying organic light-emitting diode (OLED) panels to Chinese smartphone makers Lenovo, Coolpad, Oppo Electronics and Vivo Electronics.

The subsidiary says it's on the lookout for more clients, aiming to have half its total revenue by 2017 from sales to outside customers, up from just over a third in 2013.

Industry experts think that external clients account for around a fifth of Samsung Display's sales of smaller smartphone and tablet panels compared to about 50 percent for large panels for TVs, underscoring a need for more mobile clients.

Samsung was not interested in overseas sales when Samsung Electronics' Galaxy S devices were selling well, but suddenly it is trying to push into new pastures.

Samsung's systems chips business is also trying to grow its customer base . It lost a $1 billion last year on declining sales of Galaxy smartphones and the loss of a contract to supply the processor for Apple Inc's iPhone 6.

Samsung's next Galaxy S smartphone is widely expected to be powered by its own Exynos processor.

The outfit is in talks with third-party customers about supplying its Exynos mobile processors. Samsung is likely to win back the Apple contract and supply the majority of mobile processors for the next iPhone.

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