LG Display Responds to Criticism, Says OLED panels Still Competitive Despite 'Burn

Pixel 2 XL

Pixel 2 XL

This year, LG Display made tens of millions of dollars of losses every quarter from its OLED TV panel business. "Thirteen TV producers has chosen OLED panels and the demand is on the rapid rise".

Sales improved 12% from the same period in 2016 to KRW 4.64 trillion ($4.09 billion).

Although it is expected that its OLED TV panel business will continue to grow, it is likely that its LCD TV panel business will continue to go through decrease in selling price and lack of demands.

The South Korean electronics company said Thursday that its mobile business lost 375 billion won ($334 million) during the July-September quarter. It predicted that uncertainty for LCD demands is high as China's BOE is planning to start supplying its 10.5th generation panels in 2018 and as TV demands do not have any point for huge growth.

The LCD maker expects price decline to slow down in the fourth quarter on high seasonality and also forecast shipments of screens would surge by "a mid-single digit percent" in the current quarter.

"LG Display plans to focus on investing in OLED products as part of its long-term preparation for the future", said Don Kim, the company's CFO.

LG, in an earnings call, said there could be temporary relocation of production, but that it did not expect fundamental issues and could bring forward the operation date of its new USA factory in Tennessee, previously announced as early 2019.

"We are now preparing to convert our LTPS LCD production lines according to speed of growth of plastic OLED markets and demands from our customers." said Executive Director Kim Sang-don.

The LG Home Appliance & Air Solution Company accounted for the largest share of quarterly revenue with KRW 4.98 trillion ($4.4 billion), an increase of 16% from the same period previous year, buoyed by strong sales in North America, Europe and Asia, particularly in the domestic market. "However we are now focused on extending new lines step by step and stabilizing them".

Sales of high-end televisions, including those with organic light-emitting diode (OLED) screens, helped earnings at its TV division rise 20% from a year earlier to a quarterly record of 458 billion won, with an operating margin of 9.9%.

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