South Korean flat-screen maker LG Display announced a 42 percent increase in revenue, reaching 6.7 trillion won for the second quarter of 2024. This growth spanned across all sectors, including TV, IT, mobile, and automotive displays.
The proportion of OLED products surged by 10 percent, now comprising 52 percent of the company’s revenues. Detailed breakdowns showed TV panels accounting for 24 percent of revenues, IT device panels (including monitors, laptops, and tablets) making up 44 percent, mobile and other device panels contributing 23 percent, and automotive panels representing 9 percent.
Key Business Developments:
Large-sized OLED Business:
LG Display aims to strengthen its foothold in the premium TV market by expanding its high-end product offerings through collaboration with customers and enhancing product competitiveness and cost efficiency.
Small- and Mid-sized OLED Business:
The company plans to increase its market share in high-end segments by boosting panel shipments and leveraging its advanced production capabilities for mobile device OLED panels.
OLED Panels for IT Devices:
LG Display has initiated stable mass production and shipments of Tandem OLED for IT products, known for their durability, high luminance, and low power consumption.
Automotive Display Business:
The company seeks to solidify its position as a market leader by expanding orders and customer bases, utilizing innovative technologies such as Tandem technology-based P-OLED, Advanced Thin OLED (ATO), and high-end LTPS LCDs.
LCD Business for IT Products:
LG Display will focus on high-end products featuring low power consumption, enhanced design, and superior picture quality to improve profitability.
Financial Performance:
LG Display significantly improved its profitability through an advanced business structure, full-scale mass production of OLED panels for IT products, and the expansion of large-sized OLED panel production.
The company reported an operating loss of 94 billion won ($67.8 million) for the April-June quarter, a substantial improvement from the 881 billion won loss a year earlier.
Market Dynamics:
Apple’s new use of OLED panels for iPads and early OLED panel orders for the iPhone Pro Max 16 contributed to the positive results.
Shipments of large OLED and LCD panels for TVs improved ahead of the Paris Olympics, with 55-inch LCD panel prices rising 10 percent year-on-year in Q2.
Outlook and Challenges:
Despite the improvements, LG Display refrained from making predictions about turning a profit in the second half of the year, citing market volatility and uncertain demand for end-products across various segments.
The company is considering several options regarding the potential sale of its LCD plant in Guangzhou, China.
