updated 06:38 am EDT, Wed July 18, 2012
New OLED display alliance to tackle Samsung and LG
Leading China-based display makers including Visionox and Changhong along with other partners have formed a new alliance to develop OLED displays, according to Digitimes. With the battle for LCD displays largely won by the South Korean titans Samsung and LG Display, the next battleground is set to be fought on the development and production of OLED displays. While Samsung and LG Display are the early leaders in the development of OLED technologies, the new Chinese alliance now joins a recent alliance between Japanese giants Sony and Panasonic.
Samsung, in particular, has been instrumental in moving the OLED market forward with a number of its mobile devices using the technology in the past two to three years. However, thus far, most commercial OLED displays have not been sold in volume in sizes any greater than the 7.7-inch OLED display that Samsung uses in one of its Galaxy Tab models. CES 2012 was highlighted by the debut of two 55-inch OLED flat panel TVs from, one from LG and one from Samsung, with both sets to go on sale later this year.
The display industry is one of the most highly competitive industries in the tech sector. In recent times there have been a spate of price-fixing scandals as manufacturers and their partners have tried to keep profit margins as high as possible in the face of hot competition, which would otherwise have driven prices down. Recently LG, Samsung, Toshiba and AU Optronics all paid finesamounting to $1.12 billion for engaging in the illegal practice.
With LCD makers from Japan, in particular, losing millions of dollars in the LCD display market, the creation of new alliances to better compete with the might of the South Korean pair seems inevitable. What is less certain, is which companies will ultimately prove victorious on this new technology front.