Apple Supplier LG Display's Quarterly Losses Unlikely to Affect OLED Investment

[MacRumors]

Apple supplier LG Display has reported a second quarterly loss and cut its investment plans by $2.7 billion up to 2020, on mounting concerns for the smartphone market (via Reuters).

LG shares fell 7 percent after it posted faster-than-expected declines in the price of display panels and an unpredictable outlook. The announcement follows news that another Apple supplier, Taiwan-based TSMC, also scaled back its revenue and investment estimates over uncertainty in the mobile market linked to risks of oversupply and unbalanced competition.

Crucially for Apple, LG said the $2.7 billion investment cut would not impact the speed of the Korean firm's transition from LCD to OLED production, although existing LCD operations could be affected.

The investment cut would not impact plans to "speed up the shift" from LG's mainstay liquid crystal display (LCD) business toward next-generation organic light-emitting diode (OLED) panels, the company said.

Plans to invest about 20 trillion won in OLED panels by 2020 remained unchanged, meaning the cuts would apply mainly to LCD operations.

LG's traditional LCD business, which analysts estimate makes up more than 90 percent of its sales, is reportedly struggling with falling prices as fast-growing Chinese panel makers ramp up their capacity.

Against that backdrop, Apple is investing $2.67 billion in LG's OLED panel business, with the Korean firm said to be building a production line dedicated to iPhone orders only, as part of its agreement with Apple.

Separately, LG is believed to have signed a deal with Apple to supply both LCD and OLED panels for the company's 2018 range of iPhones.

Apple is expected to launch two OLED iPhones (5.8 and 6.5 inches) and one 6.1-inch LCD iPhone later this year, with the LCD device to be positioned as a low-cost option alongside the two more expensive OLED devices.

The contract should see LG ship around 20 million LCD smartphone panels and around 3-4 million OLED panels to Apple in 2018. LG also hopes to secure the majority of 6.5-inch panel orders from Apple in 2019, which will see the firm ramp up its OLED shipments to 10 million units in the year.

LG's OLED panel business has yet to make a profit, but the company said it would be positive for earnings in the third quarter.

Article Link: Apple Supplier LG Display's Quarterly Losses Unlikely to Affect OLED Investment

 

[DrJohnnyN]

Anyone else remember back in the day when LG phones were wildly popular?

 

[69Mustang]

LG... Apple's new side piece.

"He don't really love you. Trust me on that!"
-Imagination Technologies, Apple's old side piece.

"You ain't lyin"
-GT Advance

 

[lec0rsaire]

Anyone else remember back in the day when LG phones were wildly popular?

Yes but Motorola was always strong until they were slow to answer to the BlackBerry and iPhone onslaught.

 

[ksec]

Anyone else remember back in the day when LG phones were wildly popular?

Um... was it ever widely popular? Or even just popular.

Nokia, Motorola, Sony / Ericsson, Samsung, then there was Siemens, Blackberry, Alcatel. From a World Wide market share prospective LG never made it big. There are big in SEA market, especially in South Korea. And before iPhone, they made LG Prada.

 

[macduke]

I wonder how long until we can get an OLED iPad? I wonder if Apple is waiting to be able to do the iPad @3X retina before implementing such a feature. For the 10.5" iPad Pro that's 3336 x 2502, and that might be even bigger for an 11" iPad Pro. For the 12.9", that would be 4098 x 3072, which is higher than 4K. That's a difference of 12.5MP vs. 8.3MP for 4K because the iPad is 4:3 and also a little bit wider in pixel width. It will surely not be more than two generations after the one coming out this autumn, and I wouldn't be surprised if they raise the price $50-100 when they do so.

 

[Shanghaichica]

I wonder how long until we can get an OLED iPad? I wonder if Apple is waiting to be able to do the iPad @3X retina before implementing such a feature. For the 10.5" iPad Pro that's 3336 x 2502, and that might be even bigger for an 11" iPad Pro. For the 12.9", that would be 4098 x 3072, which is higher than 4K. That's a difference of 12.5MP vs. 8.3MP for 4K because the iPad is 4:3 and also a little bit wider in pixel width. It will surely not be more than two generations after the one coming out this autumn, and I wouldn't be surprised if they raise the price $50-100 when they do so.

I don't see why they can't do one. There are other oled tablets out there so it certainly can be done.

 

[ksec]

I wonder how long until we can get an OLED iPad? I wonder if Apple is waiting to be able to do the iPad @3X retina before implementing such a feature. For the 10.5" iPad Pro that's 3336 x 2502, and that might be even bigger for an 11" iPad Pro. For the 12.9", that would be 4098 x 3072, which is higher than 4K. That's a difference of 12.5MP vs. 8.3MP for 4K because the iPad is 4:3 and also a little bit wider in pixel width. It will surely not be more than two generations after the one coming out this autumn, and I wouldn't be surprised if they raise the price $50-100 when they do so.

I doubt we will see OLED iPad even in 2020.

 

[macduke]

I doubt we will see OLED iPad even in 2020.

They might skip straight to mLED. We'll see. LCD isn't long for this world.

 

[gnomeisland]

I wonder how long until we can get an OLED iPad? I wonder if Apple is waiting to be able to do the iPad @3X retina before implementing such a feature. For the 10.5" iPad Pro that's 3336 x 2502, and that might be even bigger for an 11" iPad Pro. For the 12.9", that would be 4098 x 3072, which is higher than 4K. That's a difference of 12.5MP vs. 8.3MP for 4K because the iPad is 4:3 and also a little bit wider in pixel width. It will surely not be more than two generations after the one coming out this autumn, and I wouldn't be surprised if they raise the price $50-100 when they do so.

I think it depends on how LG will implement OLED panels of that size. Samsung uses a pentile format instead of true RGB (or RGBW like LG's OLED TVs) sub pixels for each pixel. Using pentile means you need a higher DPI to achieve the same clarity.

 

[macduke]

I think it depends on how LG will implement OLED panels of that size. Samsung uses a pentile format instead of true RGB (or RGBW like LG's OLED TVs) sub pixels for each pixel. Using pentile means you need a higher DPI to achieve the same clarity.

Yeah, that's actually part of why I was thinking they were waiting to do @3X retina.

 

[gnomeisland]

Yeah, that's actually part of why I was thinking they were waiting to do @3X retina.

The problem there is a you are pushing around a lot of pixels that are past the point of diminishing returns. I'd rather have LG or Samsung implement a true RGB/RGBW OLED display bright enough for mixed viewing as existing resolutions. a 3K or 4K display on a tablet sounds cool but it really just slows it down and drains battery life.