LG Display is expected to swing to profit in Q3 for the first time since 2021, with operating profit forecast around ₩440.4B as OLED demand recovers and depreciation pressure eases.
At a Glance
Context: Three Years of Losses, Then a Turn
Post-pandemic demand contraction in TVs, notebooks and monitors hit both OLED and legacy LCD, while the LCD exit and OLED transition amplified restructuring and depreciation costs. Losses narrowed through 2024, laying the groundwork for a 2025 turnaround.
LG Display’s previous losses were due to multiple factors, including significant market downturns. In 2022, the company reported losses of ₩2.085 trillion (≈ RMB 10.33B), which expanded to ₩2.51 trillion (≈ RMB 12.44B) in 2023. However, the company’s focus on restructuring its operations, combined with the expected rebound in OLED demand, has put it on a clear path to recovery in Q3 of 2024.
What’s Driving the Recovery
- Mobile P-OLED strength: New smartphone cycles in North America boosted shipments.
- Lower fixed costs: Depreciation periods ending on key lines; Guangzhou W-OLED utilisation improved.
- Broader mix improvement: Less low-margin IT LCD, better capacity utilisation (tablets, watches).
- OLED Shift: LG’s successful transition to OLED technology has positioned them for the future, as demand for high-quality displays in TVs and premium electronics continues to rise.
“When a top-tier maker like LG Display stabilizes, downstream buyers see fewer stockouts and more predictable lead times. We expect OLED supply to be steadier while LCD pricing volatility moderates. For TV assembly and repair customers, this should translate into more reliable sourcing across 32″–75″ and clearer planning for Q4–Q1 builds.” — QF Electronics Engineering Team
Why It Matters for Buyers
- Inventory stability: More consistent availability in mainstream sizes (43″/50″/55″/65″).
- Pricing visibility: Reduced whiplash from emergency LCD shortages; OLED quotes more predictable.
- Project planning: Better alignment of ETD/ETA for OEM builds and after-sales replacements.
- Improved long-term supply chains: Suppliers like LG Display, now seeing growth in OLED, provide a more stable long-term supply chain for large TV panels and consumer electronics.
Related Coverage
• Reuters – LG Display coverage
• The Korea Herald – Display industry
• TheElec – Korea tech supply chain