| | | LGD, "Large OLED 6 million units to be shipped this year"... ?10% YoY
- heterogeneous reporter
- Approved 2025.07.24 18:33
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Industry estimates 6.5-6.6 million units... Last year, 5.7 million units
were expected to turn into an annual surplus... "First half of the year exceeds expectations"
LG Display's 3rd generation W-OLED (left) and 4th generation W-OLED (right) (Source: LG Display)
LG Display announced that it will "ship 6 million units of large-sized organic light-emitting diodes (OLEDs) this year." This figure includes both TV and monitor units. It is more than 10% more than the 5.7 million units shipped last year.
LG Display said in a conference call after announcing its second-quarter earnings on the 24th, "Although there is significant volatility in the external environment due to U.S. tariffs and the macroeconomy, large-size OLEDs are currently being shipped as planned," and "The current annual expected shipment volume is in the mid-6 million units, which is an increase from the previous year." He added, "For both OLED TVs and monitors, panel shipments and finished product sales are quantitatively expanding compared to the same period last year."
LG Display said, "Recently, (in the demand for large OLEDs), the proportion of monitors, including gaming products, is increasing in addition to TVs," and "This year, the proportion of monitors among large OLED shipments is expected to exceed 10%."
Although LG Display has not disclosed specific figures, the parts industry estimates that LG Display's large OLED shipments this year will be 6.5 to 6.6 million units, including 5.8 million units for TVs and 700,000 to 800,000 units for monitors. This is 800,000 to 900,000 units more than last year's shipments of 5.7 million units, including 5.2 million units for TVs and 500,000 units for monitors. Large OLED shipments in 2023 were expected to reach 4.1 million units.
LG Display's large OLED business has been around for over 10 years, but it has never recorded a profit. However, since the depreciation of the OLED factory in Guangzhou, China, ends this month, if the operating rate and sales volume increase there, the deficit can be reduced. Due to cost competitiveness, LG Display is mass-producing more large OLEDs at its OLED factory in Guangzhou than at its OLED factory in Paju, Korea. LG Display's major large OLED customers are LG Electronics, Samsung Electronics, and Sony. Samsung Electronics' OLED TV shipments are important.
LG Display said, "The large OLED business achieved visible results in terms of profitability compared to the previous quarter through strengthened product competitiveness, product line diversification, and cost innovation," adding, "We will build strong partnerships with global top-tier customers and achieve stable results in growth and profitability."
At the shareholders’ meeting in March, LG Display CEO Jeong Cheol-dong expressed his intention to improve the large OLED business. At the time, CEO Jeong Cheol-dong said, “Based on the strengthened customer structure, the large (OLED) business will expand sales to ultra-large and gaming, and we will achieve a surplus structure this year through cost innovation.” In response to additional questions from reporters at the time, CEO Jeong Cheol-dong briefly replied, “I will tell you again when the results come out at the end of the year.”
In the conference call, LG Display hinted at the possibility of turning a profit for the year. LG Display said, “At the beginning of the year, we said, ‘We will definitely achieve a profit this year,’” and evaluated itself, saying, “Based on the business plan, we have achieved better than expected results in the first half of the year.” It continued, “We improved our performance by 500 billion won in the first half of the year,” and “We expect to improve our performance in the second half of the year in proportion to sales.”
LG Display's Q2 performance was sales of KRW 5.587 trillion, operating loss of KRW 116 billion, and net income of KRW 890.7 billion. Sales decreased by 16.7% compared to the same period last year, while operating loss increased. Net income turned to a surplus. Compared to market consensus, sales (KRW 5.587 trillion) exceeded consensus (KRW 5.6734 trillion), and operating loss (KRW 116 billion) was larger than consensus (KRW 102 billion loss). Net income (KRW 890.7 billion) differed from the consensus, which expected a net loss of KRW 254.6 billion. Improved foreign exchange gains and losses and other gains and losses, such as gains from the sale of shares in the Guangzhou LCD factory, were reflected.
Dielec = Reporter Lee Gi-jong gjgj@thelec. |
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