LG Electronics forecast a decline in OLED TV production in the second quarter of this year due to foreseeable declines in demand due to the coronavirus pandemic.
During an earnings report on April 29, Ha Jin-ho of LG’s Home Entertainment business said such adjustments were “inevitable” given the current market conditions.
On April 23, LG Display – which produces the panels for LGE’s OLED TVs – said while it would seek mass production at its OLED facilities in China’s Guangzhou within the second quarter, a decline in demand was most likely. LG Display had expected an up to 10% decline in large OLED panels in the second quarter.
But prices were unlikely to dip too severely as they did when Chinese suppliers began to churn out Gen-10.5 panels, according to Ha, who said supply would be adjusted according to demand to keep the panel prices stable.
“We will continue to monitor the situation and apply optimized measures to minimize fluctuations,” Ha pledged.
During the first three months of this year, LG Electronics saw its first quarter sales slip 1.3% on-year to KRW 14.72 trillion, while operating profit rose 21.2% to KRW 1.09 trillion.
The Home Appliance & Air Solution division’s sales stood at KRW 5.41 trillion, with an operating profit if KRW 753.5 billion, while its HE division posted sales of KRW 2.97 trillion and operating profit of KRW 325.8 billion. The handset-making Mobile Communications division saw its sales fall below the KRW 1 trillion level, with an operating loss of KRW 237.8 billion.
The Elec is South Korea’s No.1 tech news platform.