Published: Thu, October 26, 2017
Science | By Hubert Green

LG Display Close to Making Operating Profit from Its OLED TV Business

LG Display Close to Making Operating Profit from Its OLED TV Business

LG Display (LGD) has reportedly notched a 152% jump in net profit for the third-quarter of 2017, compared to the same period a year ago. It also added that it would boost its sales of OLED TV panels from 1.7 million this year to 2.5 million to 2.8 million units next year.

Asked to comment on any signs of weak demand for mobile LCD screens, Chief Financial Officer Don Kim said only that demand from clients continued to be strong.

"Downward trend of price will slow down during fourth quarter of this year due to panel manufacturers making efforts to maintain their profitability and added end-of-the-year TV promotions." said Executive Director Kim Sang-don.

It is expecting that percentage of small, medium, and large OLED panels out of entire sales will increase from 10% this year to 20% next year as its performance in OLED TV panel business continues to grow.

"Intentional noise has been made (over the OLED displays' burn-in)", LG Display said during its conference call with investors.

LG also makes Apple Watch displays, though these are OLED rather than LCD. "We will announce specific figures when they are confirmed". Market research firm IHS Markit expects that OLEDs will account for 11 percent of the global TV market in terms of sales in 2020, up from 4 percent this year.

LG Display has faced declining prices for television screens this year, following strong rises in 2016. The company affirms that it has increased shipments of OLED TV panels by extending its production capacity.

Sales rose 15 percent over a year earlier to 15.2 trillion won ($14 billion) while operating income jumped 82 percent to 516 billion won ($459 million).

Operating profit for July-September for the Apple Inc supplier came in at 586 billion won ($519 million), better than an average analyst estimate of 567 billion won.

The company states TV panels represented 40% of its third quarter revenues, whilst mobile phones consisted of 27%, tablets and notebooks 17%, and desktop monitors 16%.

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