Korean electronics giants LG and Samsung have agreed to buy LCD panels from each other, reports The Korea Times. Under the deal, Samsung will sell 52-inch LCD screens to LG, while LG will sell 37-inch panels to Samsung. The move is due to start in Jul and aims to boosting each firm's position in the competitive LCD market.
"Cross-purchasing has long been an issue, however, the bilateral tie-up is to help Samsung and LG widen the market gap with their Taiwanese and Japanese rivals," a Samsung spokesperson tells The Korea Times.
The head of Samsung's LCD division, Lee Sang-wan, claims selling its 52-inch panels to LG will be possible due to the second-phase launch of its eighth generation screens in the same month. Samsung's decision to purchase LG screens will be dependent on market conditions, claims San-wang, although currently the move is likely.
According to industry figures, Samsung buys 60% of 32-, 37-, 40-, 46- and 52-inch LCD screens from Taiwan-based suppliers, claims the Korea Times.
News of the deal comes in the same week that LG and Samsung announced they will collaborate on technology for a mobile digital TV standard for the North American market. Both firms also decided this week to cease production of their combined HD DVD and Blu-ray players in an effort to cut costs. Earlier this year Blu-ray was established as the dominant high-definition standard, effectively spelling the end of HD DVD.
Samsung, Sony and Vizio accounted for more than 40% of all LCD TV sets shipped in North America in the last quarter, says iSupply. The research firm estimates that the three manufacturers were separated by a mere 0.4%, with Samsung leading at 13.9%, followed by Sony at 13.7% and Vizio at 13.5%. Global shipments of LCD TVs are predicted to almost double by 2012, reaching 193.9m units.
StrategyEye's related categories: Displays - General Display, Displays - e-Ink & Flexible Displays, Televisions
StrategyEye's related companies: LG Electronics, Sony, Vizio, Sharp Electronics, SAMSUNG
