Apple supplier LG Display has reported a second quarterly loss and cut its investment plans by $2.7 billion up to 2020, on mounting concerns for the smartphone market (via Reuters).

LG shares fell 7 percent after it posted faster-than-expected declines in the price of display panels and an unpredictable outlook. The announcement follows news that another Apple supplier, Taiwan-based TSMC, also scaled back its revenue and investment estimates over uncertainty in the mobile market linked to risks of oversupply and unbalanced competition.

lg display logo
Crucially for Apple, LG said the $2.7 billion investment cut would not impact the speed of the Korean firm's transition from LCD to OLED production, although existing LCD operations could be affected.

The investment cut would not impact plans to "speed up the shift" from LG’s mainstay liquid crystal display (LCD) business toward next-generation organic light-emitting diode (OLED) panels, the company said.

Plans to invest about 20 trillion won in OLED panels by 2020 remained unchanged, meaning the cuts would apply mainly to LCD operations.

LG's traditional LCD business, which analysts estimate makes up more than 90 percent of its sales, is reportedly struggling with falling prices as fast-growing Chinese panel makers ramp up their capacity.

Against that backdrop, Apple is investing $2.67 billion in LG's OLED panel business, with the Korean firm said to be building a production line dedicated to iPhone orders only, as part of its agreement with Apple.

Separately, LG is believed to have signed a deal with Apple to supply both LCD and OLED panels for the company's 2018 range of iPhones.

Apple is expected to launch two OLED iPhones (5.8 and 6.5 inches) and one 6.1-inch LCD iPhone later this year, with the LCD device to be positioned as a low-cost option alongside the two more expensive OLED devices.

The contract should see LG ship around 20 million LCD smartphone panels and around 3-4 million OLED panels to Apple in 2018. LG also hopes to secure the majority of 6.5-inch panel orders from Apple in 2019, which will see the firm ramp up its OLED shipments to 10 million units in the year.

LG's OLED panel business has yet to make a profit, but the company said it would be positive for earnings in the third quarter.

Related Forum: iPhone

Popular Stories

Prosser Series 8 3

Apple Watch Series 8 Rumored to Feature New Design With Flat Display

Wednesday May 18, 2022 6:21 am PDT by
The Apple Watch Series 8 could feature an all-new design with a flat display, according to the leaker known as "ShrimpApplePro." In his latest video on the YouTube channel Front Page Tech, Jon Prosser highlighted information from ShrimpApplePro that suggests the Apple Watch Series 8 could feature a flat display in what seems to be a design originally rumored for the Apple Watch Series 7. ...
anker 563 dock ports

Anker's Latest USB-C Docking Station Brings Triple-Display Support to M1 Macs

Wednesday May 18, 2022 7:06 am PDT by
While Apple's early M1-based Macs can only officially support a single external display, there are ways around the limitation. Anker is launching a new 10-in-1 USB-C docking station today which delivers just that. The Anker 563 USB-C dock includes two HDMI ports and a DisplayPort port, and it leverages DisplayLink to carry multiple video signals over a single connection. Given that this hub...
macOS Monterey 2

Apple Releases macOS Monterey 12.4 With Support for Studio Display Webcam Update

Monday May 16, 2022 10:10 am PDT by
Apple today released macOS Monterey 12.4, the fourth major update to the macOS Monterey operating system that launched in October 2021. macOS Monterey 12.4 comes over two months after the launch of macOS Monterey 12.3, an update that added Universal Control. The ‌‌‌‌‌macOS Monterey‌‌ 12.4 update can be downloaded on all eligible Macs using the Software Update section of System...
Whatsapp Feature

WhatsApp to Let Users Leave Group Chats 'Silently' and View Rich Link Previews in Status Updates

Tuesday May 17, 2022 3:07 am PDT by
WhatsApp is working on a new feature that will allow users to "silently" leave group chats hosted by the messaging platform instead of all members of the group being notified when they do. As it stands, when someone leaves a group chat, WhatsApp announces their exit to the entire group, making the act of leaving very public. It's not possible right now to leave a group quietly, but WhatsApp...
apple data auction iphone privacy ad

Apple Highlights iPhone's Latest Privacy Features in New 'Data Auction' Ad

Wednesday May 18, 2022 9:00 am PDT by
Apple today shared a new ad highlighting iPhone privacy features like App Tracking Transparency and Mail Privacy Protection that are designed to give users more transparency and control when it comes to their personal data being collected. The ad revolves around a young woman named Ellie who discovers that her personal data is being sold at an auction house, with bids being placed on her...
airpodsproinear

Apple Facing Lawsuit After AirPods Allegedly Ruptured Child's Eardrums With Amber Alert

Tuesday May 17, 2022 11:40 am PDT by
Apple's AirPods ruptured the eardrums of a 12-year-old boy in 2020 when a loud Amber Alert was issued, according to a lawsuit filed against Apple in California (via Law360). The child, identified as B.G. in the filing, was watching a movie on Netflix on his iPhone in 2020 while wearing AirPods Pro. The AirPods Pro were allegedly set at a low volume, but an Amber Alert sounded without warning ...
apple store palo alto

Apple Reinstating Employee Mask Mandate at Approximately 100 U.S. Retail Stores

Tuesday May 17, 2022 11:11 am PDT by
Apple retail employees at around 100 stores will need to go back to wearing a mask while working, according to Bloomberg's Mark Gurman. Apple is mandating masks for employees again due to a rising number of COVID cases across the United States. Customers who visit an Apple Store are not required to wear a mask at this time, but Apple is continuing to recommend masks for all Apple Store...