LG Display, a major display panel supplier, faced a fifth quarterly loss due to weak mobile display demand and slow premium TV market in Europe.
In Q2 2023, LG Display’s operating loss hit 1.06 trillion won ($876 million), a massive drop from last year’s 38 billion won profit. Revenue fell 17% to 7.3 trillion won.
The scarcity of mobile display panels resulted from chip shortages and production delays in smartphones. The war in Ukraine and rising raw material costs added to the struggle.
LG Display’s premium TV business also suffered as European consumers hesitated amid economic uncertainty.
The global electronics industry struggles with chip shortages, Ukraine conflict, and inflation, impacting consumer spending and electronic demand.
Samsung Display and BOE, like LG Display, also reported recent losses.
LG Display hopes for H2 2023, expecting better mobile display demand as chip shortages ease. Optimism lies in the premium TV market in China.
However, the company’s H2 prospects remain uncertain due to persistent chip shortages, Ukraine conflict, and inflation, possibly leading to more losses in upcoming quarters.
