Following weak sales of AMOLED panels in the handset segment, Samsung Display is considering slashing pricing for the technology to end customers in order to spur growth.

Industry sources in the supply chain said Samsung has been visiting handset customers primarily based in China to discuss reduced pricing for AMOLED panels. The move would allow Samsung to increase utilizations at its AMOLED fabs and potentially allow vendors to use the technology in handsets other than high-end units, therefore increasing visibility and potential demand for AMOLED in the future.

End customers are reprotedly considering Samsung's offer but are concerned how much Samsung is willing to drop pricing. China vendors anticipate ongoing demand for high-end smartphones but with low pricing, which means supply chains will have to provide lower-priced solutions for panel and touch panel solutions, the sources said.

AMOLED panel technology has been mostly used in high-end smartphones from Samsung Electronics and pricing for the technology has usually been steeper over solutions such as a-Si, which panel makers from Taiwan are pushing. Meanwhile, China makers are also pushing TFT LCD solutions, as well as AMOLED solutions.

The global proportion of small- to medium-size TFT LCD production capacity from China is expected to increase to 35% as of 2017, up from 15.5% in 2011, according to Digitimes Research. In terms of large-size TFT LCD applications, China's global share will increase from 5.3% in 2011 to 25.5% in 2017.The statistics include production from both China-based makers and international makers who have facilities in China. China-based makers will be responsible for 33% and 17% of the global shipments of small- to medium-size and large-size LCD panels, respectively, in 2017. Their shipments to the two segments are expected to reach 130 million and 970 million units in 2017, up 51% and 54% respectively compared to 2013.

Meanwhile, news source CNET recently reported that Kim Hyun-seok, head of Samsung Electronics' TV business, said the company has no plan to release no new OLED TVs in the near future, and will instead shift focus to quantum dot LCD models.

Digitimes Research added that OLED TV pricing is expected to remain double that of Ultra HD TVs through 2016, which will influence the 120% on-year expected growth in Ultra HD TV shipments in 2015.