It looks like Samsung is in talks to purchase OLED TV panels from rival LCD TV manufacturer LG. A Seoul-based newspaper reported that Samsung is in talks to purchase 50 million units of LG’s next-generation television technology, which is currently in development. The Korean electronics giant will be able to significantly increase its market share by having a bigger slice of the high-end plasma television market, and it appears as though they are ready to strike this deal. While no official contract has been made, an agreement for purchase and sales of existing products between both companies has been discussed in detail, according to the newspaper. There have also been talks of possible purchases of future LCD television sets from the Korean electronics giant.
There is no guarantee that this deal will close, but it would appear that Samsung sees the value of this particular piece of television technology very well. The Korean company has already produced its own brand of flat-screen TVs, and it would be a logical step for them to branch out into the high-end market for televisions. This move would seem to be related to their ongoing efforts to reduce their own costs and expenses in order to boost their overall profit margin. In the process, they would be offering more affordable products for consumers.
The terms of the sale of such a large amount of surplus production are not being disclosed, but it appears as if the price per unit would be similar to what other major television manufacturing companies have done in recent years. For instance, Panasonic had sold millions of sets of its LCD TVs to retailers at a price range of more than two hundred dollars. In the same time period, LCD TV prices in the United States fell by more than 20 percent. If Samsung was able to obtain a similar percentage discount on its OLED televisions, it would surely help its cause tremendously. This would especially be beneficial if the Korean company intends to mass-produce these products in massive quantities to make a substantial profit on each individual unit. It will also allow it to lower the costs associated with marketing and advertising its new product to the market.
These television manufacturing companies continue to be major competitors in the television market. If they intend to keep up their aggressive strategies in the rapidly growing global marketplace, it would probably be in their best interest to come up with deals with both Samsung and LG. With these two giants now in bed together, there should be plenty of synergies that will lead to increased sales, more profits, and a strengthened position in the industry. This seems to be what their top executives are hoping for, and it is believed that it is possible that they will strike a deal soon.
Another factor that is being looked into right now is the possibility of a partnership between LG and Samsung. There have been rumors that the Korean company may produce its own television sets under its own brand. In this case, the South Korean manufacturing giant would simply take care of the production process while the Korean company would only focus on marketing and branding. This would potentially be a very lucrative deal for both companies.
A third possibility is that the two companies could team up to form a “joint venture” wherein each would take responsibility for a specific division of the business. This means that either company could focus on manufacturing, selling, or both without the other having to worry about handling other aspects of the business. This could also be beneficial for each company since they would be saving money during the development phase of the new technology. A joint venture is also usually a good idea for companies with strong strategic alignments.
These reports of a possible partnership between Samsung and LG come at a time when both companies have shown great progress in their efforts to gain control over the television market. Both companies have released new curved screen televisions that are currently the biggest selling products in the industry. It should be noted, however, that these television models have featured features designed to appeal to a particular audience. For example, the curved screen design on the Samsung LCD TV is geared towards home users who are looking to buy a television that can fit their limited space and house design. On the other hand, LG’s new flat-screen TVs are geared towards consumers who are looking for an LCD television with high-end performance and multimedia features. These features are exclusive to LG.
If Samsung’s recent partnership with LG is a success, it will be an excellent move for the Korean electronics giant. Not only will it help the two companies gain more visibility and a larger share of the television market, but it will also be a positive step towards increased sales and profits. However, it should be noted that the success of any successful relationship between a partner company and its primary customer should not be solely judged by the results of sales and profits. Careful management of the partnership is crucial in ensuring that customer satisfaction increases over time.
