LG Display OLED TV panel business thriving and set to expand
LG Display enjoyed a healthy first quarter to the lastest fiscal year and is reportedly planning to expand its production capacity for its small and medium OLED panels this year.
LG Display profited by approximately £700 million, which is a 2498.3% increase from operating profit in first quarter of last year and as well as expanding OLED panel production, will also ramp up its manufacture of extra-large LCD panels (60 inches and above) with the company predicting yearly growth of more than 30% in that field.
The company is anticipating an increase in the amount of OLED TV panels it will be asked to supply in the second half of 2017 with a resulting increase in sales and profits.
“Responses from markets towards CSO (Crystal Sound OLED) and wallpaper are better than our expectations.” said Executive Director (CFO) Kim Sang-don of LG Display. “Because interests and demands for small and medium plastic (flexible) OLED panels are growing bigger, we are currently modifying our strategies, direction of investments, and detailed plans.”
This year’s investments will be concentrated on small and medium plastic OLED panels.
“We are going to focus 70% of our yearly facility investments on OLED panels and majority of this 70% will be on small and medium plastic OLED panels.” said Executive Director Kim. “However because cost of investments for plastic OLED panels is significantly bigger than cost of investments for LCD panels, we are going to deeply examine certainty towards demands in this market and situations of our customers and carry out investments conservatively”
LG Display predicts that the deamnd for small, medium, and large OLED panels in 2018 and 2019 will be larger than it originally projected and will decide on the scale of investments and direction of the P10 Line manufacturing line accordingly.
“We are calculating size of our investments again as we are receiving many requests from many customers.” said Executive Director Kim. “Fortunately because product’s profitability, evaluation, and market conditions are positive, we are examining things according to these conditions.”
LG Display estimates it will ship 300,000 and 500,000 OLED panels, per quarter, during the first and second halves of this year respectively. Expectations have been raised due to the positive demand from various markets.
While this is all good news for OLED TV lovers, the small and medium sized panels are aimed at the mobile device market but it all helps the technology gain market recognition and traction.
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