SamMobile has affiliate and sponsored partnerships. If you buy something through one of these links, we may earn a commission. Learn more.

Samsung Display to likely post an operating loss for Q1 2020


Last updated: April 22nd, 2020 at 05:25 UTC+02:00

Samsung Display, a display panel manufacturing arm of Samsung Electronics, is the leader in the smartphone display business. It also makes displays panels for PC monitors, smartwatches, laptops, and TVs. The company seems to be facing a problem as it will likely post an operating loss for the first quarter of this year.

Samsung Display is projected to report an operating loss of KRW 464.2 billion ($378 million) and KRW 6.3 trillion ($5 billion) in revenue for the first quarter of 2020. Analysts say that the reason for the company’s operating loss is a sharp fall in demand for smartphones and TVs after the COVID-19 outbreak. Increased fixed costs due to the company’s factories being closed and the permanent closure of its LCD panel manufacturing lines have hurt the company’s performance.

Recently, the company announced that it would suspend the production of all LCD panels by the end of 2020 and upgrade its factories to start manufacturing QLED panels. Around 89 percent of the company’s sales come from supplying smartphone OLED panels to Apple, Huawei, OnePlus, OPPO, Xiaomi, and other brands, and that’s where the company is taking the hardest hit.

Unless countries around the world become successful in containing the deadly virus in the next few months, we will likely see Samsung Display and other firms posting losses over the next few quarters. Samsung’s other business, including its smartphone and home appliance arms, have taken hits as well due to the COVID-19 crisis.

Via Business Samsung Display
Load 0 comments

You might also like

Galaxy Z Fold 4 uses Samsung’s newest Eco² OLED Plus panel with higher efficiency

Samsung’s latest flagship foldable smartphone, the Galaxy Z Fold 4, was recently seen defeating the Galaxy S22 Ultra in a battery life test. It wasn’t just because of its more power-efficient Snapdragon 8+ Gen 1 processor. Samsung’s new OLED display panel also contributed to its longer battery life. The Galaxy Z Fold 4 uses Samsung […]

  • By Asif Iqbal Shaik
  • 4 days ago

Samsung’s QD-OLED panel bags top honors in ultimate TV shootout

In this year’s TV shootout conducted by Value Electronics (via TechRadar) just outside of New York City, the Sony XR-A95K won the best 4K TV award. This award was bestowed upon Sony by a panel of TV testing experts, and they deduced that the Sony XR-A95K is the best among the rest of the competing 4K TVs. […]

  • By Sagar Naresh
  • 2 weeks ago

Samsung won’t give Apple its best OLED tech for iPhone 14

As per industry insiders, Samsung Display is one of Apple’s primary OLED suppliers for the upcoming iPhone 14 series. And according to a new report, the company will help Apple lower iPhone 14 OLED production costs by applying materials of different grades for different iPhone 14 models. Samsung Display will reportedly supply OLED panels for […]

  • By Mihai Matei
  • 3 weeks ago

Samsung patents new energy-efficient display refresh rate technology

Samsung is developing a new display refresh rate technology for mobile devices. A new patent application by Samsung describes a display technology that can apply different refresh rates simultaneously across multiple screen areas. This could be the next evolutionary step in Samsung’s refresh rate technology for mobile displays. The Galaxy S20 was the first to […]

  • By Mihai Matei
  • 3 weeks ago

Samsung-made PlayStation VR2 OLED display is miles better

Samsung Display is reportedly supplying OLED panels for Sony’s upcoming PlayStation VR2 (virtual reality) headset, just like it did for the original PSVR. Sony now spilled the beans on its PS VR2 system in an “early look” blog post and revealed more details on the OLED panel that enables the virtual reality experience. The PS […]

  • By Mihai Matei
  • 3 weeks ago

Galaxy Watch 6 could use OLED display made by a Chinese firm

Samsung’s Galaxy smartwatches have exclusively used OLED panels from Samsung Display, offering excellent image quality. But the display supplier could change next year, at least going by the latest report. According to an exclusive report from Naver, Samsung is in talks with Chinese display manufacturer BOE for the Galaxy Watch 6. The smartwatch is expected […]

  • By Asif Iqbal Shaik
  • 3 weeks ago