Samsung Display has split its OLED business from its less profitable LCD arm, reported Korean Times.

According to an unnamed company official familiar with the issue, following the separation more of the company’s workforce will be joining the OLED business unit.

The same official also commented the company has initiated an exit strategy for LCDs that have become unprofitable.

A Samsung Display spokesman commented the company is aiming to find measures to counter the effects of weak demands of conventional LCD displays that are becoming increasingly unprofitable because of rapid rise of low-cost Chinese competitors.

He did not comment about the latest business shake-up.

The Korean electronic conglomerate is seeking alternatives to shift away from LCDs to more profitable OLED panels for small to mid-sized electronic devices.

The company has been shutting down LCD production lines, such as its L7 production line in Korean city Cheonan to sell to unidentified Chinese firms, while some of its other LCD plants have been converted into OLED production facilities to meet next generation Apple iPhone demands.

Another possibility is parent group Samsung Electronics might take over the LCD business from Samsung Display to keep the group’s TV business operating.

Another official said Samsung Electronics may acquire the LCD business from Samsung Display to keep Samsung's TV business running. Unlike LG Electronics, Samsung is still keen on promoting TVs using its LCD-related infrastructure.

Samsung Electronics holds an 84.8% stake in Samsung Display, followed by Samsung SDI’s 15.2%.

Samsung Display has been awarded a deal with Apple to supply its OLED displays for new iPhones, which will be launched sometime in 2017. LG Display will be responsible for supplying the second batch of OLED panels for Apple devices.

Samsung Display recently won a deal with Apple to supply its OLED displays for use in new iPhones, which will be introduced in late 2017. LG Display will supply OLEDs for the second batch of Apple devices.