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Microsoft Abandons Smart Display Project, Stranding Domestic Monitor Makers 2003/12/23 By Yoo Hyung-jun The sudden abandonment of the project of developing operating system of the `Smart Display`, the next-generation display platform, by Microsoft stranded domestic `Smart Display` makers to suspend their development. Last week, Microsoft sent a letter to a part of smart display developers including Samsung Electronics and LG Electronics notifying them that it would immediately abandon the development of `Smart Display` OS 2.0, according to industry sources on Monday. Supported by monitor makers such as TriGem Computer, Philips, ViewSonic, and NEC, the software giant unveiled Smart Display OS 1.0 early this year that enables LCD monitors to be used at any place in the office or at home connecting with PCs via wireless networks. "Microsoft was first scheduled to launch toward the end of this year the Smart Display OS 1.5 that allows a PC to connect with a monitor and smart display simultaneously, but later it changed the time table to introduce its 2.0 version, in the latter part of next year, that is reinforced with several other functions including mobile image processing," said an industry observer. "But eventually, Microsoft apparently cancelled this project, virtually suspending the Smart Display project as a whole," he added. The abrupt change in policy by Microsoft put domestic smart display developers in a dilemma. Samsung Electronics plans to disorganize its smart display planning and development team, while LG Electronics is seeking a breakthrough after rolling out its initial smart display products next month as scheduled. "Since its smart display is differentiated from others supporting TV-receiving functions also, LG Electronics will commercialize it regardless of the policy change of Microsoft," said an officer at LG Electronics. "We expect, however, to see a setback in developing the next-generation product." "Informing its change in policy, Microsoft did not express any apology except saying `We appreciate your cooperation`," said an officer at a monitor maker. "We have to be more prudent in deciding whether or not to support Microsoft when it announces a new business plan." "We have not received any official words from the head office on this subject yet, and we are now trying to find out the truth," said Microsoft Korea. Experts see that Microsoft may have abandoned the smart display project not because of any technological problems but because it evaluated the product has lost its commercial value. Whereas Microsoft aimed to set smart display’s price at around 500 dollars, it became unable to do so due to a hike in prices of LCD panels, and prices of notebook PCs recently dropped to 599 dollars. Currently, ViewSonic and Philips are selling smart displays at more than 900 dollars, while TriGem Computer is distributing its products at 990,000 won (approximately 832 dollars) in the domestic market.