LG Display wins in earnings, LG phones losing out
Chaebols have many stories within them and Korea’s second-largest such, LG, is showing both positive and negative ones in summer quarter earnings reports.
LG Display recorded the equivalent of $519 million in operating profit on top of market estimates, riding on a 3 percent annual hop in revenues.
“Mobile LCD panel sales have been supported, partly due to the release of the latest iPhone,” said one analyst to Reuters.
Both the iPhone 8 and iPhone 8 Plus feature LCDs as opposed to the iPhone X, the first such device to have an OLED display. While Samsung is providing those displays, LG is working with Google on the Pixel 2 XL displays. Furthermore, LG could be working with Apple to provide product for a foldable phone.
On the balance, business for television and commercial displays has faced price pressure, though mid-size panels for laptops, notebooks and tablets have stopped bleeding with revenue flattening out.
Better news came out of LG Electronics for the third quarter as sales jumped 15.1 percent to the equivalent of $13.5 billion while operating income rocketed 82 percent to $456.7 million.
LG’s mobile communications unit, while still losing money, has recovered some from a year ago. Sales were better by 7.9 percent to nearly $2.5 billion, but it converted to a $332 million loss. Still, it’s a 12 percent improvement. The unit is dealing with component price hikes and strong competition in the upcoming peak season.