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Samsung pulls the switch on its LED lamp business

Sections: Appliances, Green Home Tech, Lighting control

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Samsung has been in a rough patch lately, as profits from its mobile business sales have been shrinking. Although they’ve been selling more smartphones overall, margins have been whittled away by steady marketing costs and falling sales prices. Just recently the company has announced its plan to discontinue making LED lights, an indicator that the tech giant is being battered in more than one area.

samsung LED lightingOnce deemed a key growth area, the LED market segment has seen a retreat from companies considered big players in lighting. Philips had stated its intention to spin off the lighting business not too long ago.

As price wars have made the products more affordable and accessible to consumers, it also cut away too much profit for Samsung to consider staying in the market. The competition has grown more fierce as consumer demand has maintained strength.

Samsung has stated that it intends to stay in the LED industry with the manufacture of components, such as backlighting for electronic displays. It’s hard to say how long they will continue this course. Four years ago, LED lighting was identified as a high profit focus area along with rechargeable cells, solar cells, medical devices, and biopharmaceuticals. So far, those other areas haven’t shown that much for growth and revenue.

<Source: reuters>

 

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