Samsung, LG riding on strong demand for display panels
Posted : 2017-05-04 16:43
Updated : 2017-05-04 18:32
By Kang Seung-woo
Cross-town rivals Samsung Display and LG Display are expected to repeat their strong first-quarter operating profits in the following quarter amid strong demand for panels, according to market watchers, Thursday.
Samsung reported an operating profit of 1.3 trillion won ($1.14 billion) for the first three months of the year, and LG's quarterly earnings also surpassed the 1 trillion won mark for the first time with 1.27 trillion won.
Samsung, the dominant force in the market for small and mid-size OLED displays with a market share of 97.7 percent, is projected to reach as much as 1.5 trillion won in the April-June period on the back of increasing smartphones using OLED screens.
Demand for smartphone OLEDs is outstripping supply as more manufacturers are shifting to adopting the OLED technology for their new phones.
In that respect, the OLED portion in the smartphone display has been on an increase from 39 percent last year to 48 percent this year.
Apple has reportedly ordered 70 million bendable OLEDs from Samsung Display for the upcoming iPhone, which is expected to be reflected in its second-quarter financial results.
Samsung is also believed to be producing as many as 97 million OLEDs for Apple this year, remaining the lone OLED supplier to the Cupertino-based company.
In addition, sales of Samsung Electronics' latest flagship smartphone -- the Galaxy S8 -- are forecast to reach 50 million by the end of this year, backing up its lofty expectations.
For LG Display, continued trends toward large-size displays for TVs will help the company see increasing earnings in the following quarters.
According to the data compiled by industry tracker WitsView, LG Display produced 12.6 million LCDs in the first quarter, standing as the leading maker of LCDs for TVs.
Amid high prices for large-size panels and strong demand from PC and TV makers, LG is expected to come up with strong earnings for the time being, according to watchers.
"Beating its previous track record, LG is expected to continue its solid performance in the second half of the year," Dongbu Securities analyst Kwon Sung-ryul said.
"As the loss from OLED TVs is likely to abate in the second half, its operating profit will see an upswing in profits in the second and third quarters." |
