Samsung Display’s sales last year were 34.38 trillion won (189.1 billion yuan), and its operating profit was 5.95 trillion won (32.725 billion yuan), a year-on-year increase of 8.4% and 33.4% respectively; sales in the fourth quarter of last year were 93,100 billion won, and operating profit was 1.82 trillion won. Samsung showed record profits for both the full year and the fourth quarter of last year.
An important factor driving Samsung’s performance growth last year was the impact of Apple’s iPhone panel orders. Samsung Display’s core customer companies are Samsung Electronics and Apple. In the case of a sluggish smartphone market, iPhone demand is relatively strong. Although Samsung Electronics’ smartphone sales have shrunk, sales of folding screen smartphones with more expensive panels have increased significantly, which has also led to the growth of Samsung Display’s performance.
According to analysis, the expansion of Apple’s iPhone 14 Pro series panel supply has played a key role. The iPhone 14 Pro model is equipped with a high value-added product LTPO OLED panel. Samsung Display has undertaken a considerable number of Apple LTPO OLED orders. The industry believes that more than 70% of Apple’s iPhone 14 panels are provided by Samsung Display. Through the adjustment of the LCD business, Samsung Display has reduced its losses and contributed to its good performance.
Samsung Display expects quarter-on-quarter and year-on-year declines in performance as demand for smartphones continues to weaken due to economic slowdown in major regions. Samsung Display said: “We will actively respond to the launch of major customers’ flagship mobile phones and strive to minimize the (negative) impact. By introducing new QD-OLED products for ultra-large TVs and displays, we will ensure increased demand.”
