|Samsung earnings (snip)-|
Display Earnings Improve on One-off Gain and ASP RiseThe Display Panel Business posted KRW 6.87 trillion in consolidated revenue and KRW 1.28 trillion in operating profit for the second quarter. Its earnings improved from the previous quarter despite weak seasonality for mobile products, primarily due to a one-time gain as well as an increase in overall ASP.
Mobile display saw its earnings grow as the continued adoption of OLED panels by customers helped its profit margin remain strong. Compared to a year earlier, both sales and operating profit increased substantially because of wider adoption of OLED displays as well as the base effect. For large displays, while the conversion of manufacturing lines to QD displays affected revenues, profitability improved thanks to the increased ASP of panels for TVs and monitors.
Looking ahead to the second half, Samsung expects demand to recover for mobile displays as major customers are planning to launch new flagship models, including high-value products such as foldable phones. However, there are concerns that a supply crunch of certain components such as DDIs may affect shipments for some customers. Meanwhile, the Company forecasts the sales of IT devices and portable gaming products featuring OLED screens to grow in earnest.
Samsung will continue to strengthen its market leadership by introducing new technologies such as Under Panel Camera (UPC) and low-power consumption related one. For large displays, the Company will focus on finalizing the mass production process for QD display to allow product shipments to start within the year.