What Display Daily Thinks: The usual expectations for a second half of the year rebound are there among the chatter from Korea’s financial analysts. In related news, LG Display is anticipated to start manufacturing Gen 8 OLED panels for IT devices one year later than Samsung. However, despite this delay, LG Display is expected to secure panel orders from Apple and commence supplies no later than 2026, according to The Elec. Samsung is currently the only display panel maker investing in Gen 8 OLED production, while LG Display and BOE have yet to follow suit.
Like we said yesterday about LG Group’s business dilemmas, this kind of news is only leading up to reorganization and consolidation within these giant corporations and display units are going to bear the burden more than others because there is still some upside to the general semiconductor market and memory sales for Samsung, but the display market doesn’t have AI to drive its sales, and Apple looks like it is in a holding pattern, too.
We also notice a lot of downplaying of the situation at BOE by the Korean press and analysts, but who knows. Apple can flip a company’s misfortunes in the blink of an eye.
Samsung Hindered by Global Chip Industry Downturn
Samsung has released its earnings guidance for the second quarter of this year, forecasting a significant decline in operating profit. The company predicts an operating profit of 600 billion won ($458.5 million), marking a 96% plunge and representing the lowest quarterly earnings in 14 years. This downward trend can be attributed to the severe global downturn in the chip industry, which has adversely impacted Samsung’s semiconductor division.
The consolidated sales estimate for the April-June period is approximately 60 trillion won ($42.2 billion), reflecting a 22.3% decline compared to the previous year. While detailed figures for each division were not available in the earnings guidance, market watchers believe that sluggish sales in mobile devices during this period may have also contributed to the profit loss.
Despite the current challenges, market analysts anticipate an improvement in Samsung’s earnings in the second half of the year. This expectation is based on the projected decrease in the chip deficit as DRAM memory shipment increases. Samsung has also announced plans to reduce production to address inventory overflow, further supporting this outlook.
