First LG. Now LCD maker Samsung is said to be slashing TV panel production by a whopping 80% – and converting to tab and mobile PC displays as mobile demand rockets.
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According to Korea Economic Daily, the 3D TV maker is cutting monthly production as demand for TV sags due to a toxic combination of poor global economic outlook, drooping PC demand and the rise of the tablet category.
An increasing number of devices, including Samsung’s own Galaxy Tab 10.1 (1280×800 res) as well as the iPad 2 (1024×768) now boast LCD screens, as do notebooks, as standard.
This means Samsung, who already are a major supplier of LCD displays for the iPad – and one of Apple’s single biggest customers – will slash TV output from 1-1.3 million to a paltry 200K units per month.
It also plans to convert TV panel lines into tablet and notebook display production.
The 3D TV maker refused to confirm the report.
This comes as fellow Korean TV maker LG are also said to be slashing investment in LCDs and is ‘likely’ to report major losses next quarter as tablets and smartphone mobile TV options surpass traditional displays.
Read Tab Threat: LG Slash LCDs As iPad 2 & Androids Call The Shots Here
“We plan around 3 trillion won ($2.8 billion) of capital spending next year and have no plans to build a new factory,” a LG Display spokesman confirmed.
LG’s display division recently posted a shocking 96 per cent dip in net profits last quarter from 554.8 billion won in 2010 to 21.3 billion last quarter.
