By Kim Hyun-bin
LG Display expects to see OLED TV sales increase further despite a contraction in the mainstream TV market.
“Demand for OLED panels showed 90 percent growth year-on-year despite lower demand in the TV sector,” an LG Display official said during the company’s conference after the release of third quarter earnings, Wednesday.
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The recent production capacity increase at LG Display’s Guangzhou OLED plant helped sales increase.
“With the a capacity addition of 30 thousand panels at the Gangzhou plant that started operation in Q3, we will increase OLED production to 10 million a year and further drive growth in the OLED business,” the LG Display official said,
LG Display saw third-quarter sales increase 7 percent year-on-year to 7.22 trillion won, while operating profit surged 222 percent to 528.9 billion won.
The huge increase in operating profit was lower than expected. Analysts initially predicted an 800 billion won operating profit for the third quarter, but slashed the estimate to around 600 billion won after LCD TV panel prices continued to drop starting in July. Since last year, the COVID-19 pandemic has caused LCD panel prices to double.
“Operating profit was hit by LCD TV panel price declines and other component supply issues,” LG Display said.
According to market research firm Witsview, the average price of 32-inch LCD panels in the second half of September dropped 18.8 percent to $56 compared to the first half of September and fell 9.7 percent compared to the second quarter.
Screens of other sizes also saw a drop in prices with 43-inch LCD panels dropping 10.5 percent to $111, while 55-inch, 65-inch and 75-inch panel prices fell 8 percent, 6.8 percent and 5.1 percent to $195, $260 and $373, respectively.
The company expects LCD panel prices to continue to drop in the fourth quarter. But the decline will be offset by an increase in OLED sales that quarter.
LG Display to see significant growth in OLED sales
Source: Buhay Kapa PH
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