The nearing new year is going to bring new opportunities for both legendary companies Sony and Samsung as the long going dispute between has finally ended at a good note. Earlier there were rumors that both the companies were planning to take over their stake in joint venture between them regarding launch of LCD to be launched. Now there are reports that reveal that both companies have settled down the dispute, and according to authentic sources of Sony, Samsung will be paying them $939 million in cash. However, S-LCD Corp will be totally owned by Samsung.
According to agreement, most of the LCD screens will be manufactured for LCD TVs, while some of this will also include manufacture of LCD screen for smartphones. The agreement also indicates that Sony will be buying LCD panels manufactured by S-LCD company. This clause is included to increase the competition between both the companies. The agreement also determines that Sony will be benefited with fix stake of S-LCD whereas Samsung will be enriched by enjoying adjusting output and various other options. Both companies have agreed to maintain their collaboration on production of LCD.
The end of this dispute between the two legendaries means direct benefit of customers. It is anticipated that with this joint venture price of smartphone’s screen will fall down, although AMOLED screen will still carry to dominate stake of LCD screen of expensive phones. This may be beneficial clause for Sony’s TV division that incurred heavy loss few years back, but was able to overcome from the loss as an impact of Sony’s smartphone series launched in market. Now as Ericsson has sold out its stake to Sony, it will introduce various long-term changes in Sony’s production strategy. Let us hope this joint alliance proves to be a beneficial deal for both companies individually.