Samsung Eyes OLED Technology, Invests in Sharp
Signaling to help the struggling electronic company of Sharp Corp., Samsung Electronics Co. is willing to invest in this organization. With this move, it is indicated that the biggest seller of TVs will be accelerating towards better set-ups with usage of OLED technology, thus trying to build a wider gap with the Sony Corp.
According to news and reports, Samsung, the South Korean organization will be acquiring 3 percent of Sharp’s non-profiting branch for a cost of 10.4 billion yen that is $111 million, in order to secure its clear displays of televisions and smartphones. The company is geared up to emphasize on the organic diode technology for light emission, which ensures better, brighter and sharper image quality, that too with less power consumption.
In a serious effort to enhance its sales of the modern ultra-thin television sets which costs almost twice more than a LCD model, Samsung is financing in OLEDs technology with help of Sharp Corp through partial acquisition. Samsung along with the Korean rival organization (LG Electronics) are trying to bank on the new and latest technology to improve the demand for their TVs which has pushed the sales of Sony, Panasonic and Sharp down to losses.
Kim Sung In, an analyst of Kiwoom Securities Co, Seoul, says “Samsung is all ready to reduce the production of LCD TVs; they are shifting focus towards the latest technology of OLEDs. LEDs have become out fashioned and are not making enough business.”
To acquire shares of Sharp Corp, Samsung will be paying 290 yen for a share which is 15 percent lower than the closing stock price of yesterday. As per the filing report, the sale process of stock will be closing on March 28.
In an e-mail, it is revealed that the Foxconn Technology will continue to discuss other aspects on the proposed stock with Sharp. Even after two long years of discussion, the two companies are yet to come to terms in regard to their investment policies.
The stock of Sharp witnessed a fall of 4.4 percent in Tokyo whereas Samsung had a drop of 1.9 percent in Seoul and 0.7 percent in Kospi index. Sharp Corp, the company known as the screen manufacturer for iPhones and iPads of Apple will proceed to buy new technologies related to LCD and mobile needs.
In the brief interview, Kim Hyun Suk, the chief head said “In the first few months of the year, Samsung has plans to sell OLED TVs to the global market which is expected to soar high by at least 30 to 40 percent.”
On the other hand, LG Electronics also state that they will start selling the 55 inch OLED TV sets in South Korea. They also plan to expand the sale of OLED TVs in regions such as North America, Asia and Europe within the first yearly quarter.