South Korea electronic giant LG has just reported a Q3 loss for its Display division – its first loss in 8 years.
The loss, of $372 million (€334.1m), for the July-September period reflects falling sales down 4.6 per cent on the same period a year ago. A week ago the company’s newly appointed CEO, Jeong Ho-young, warned staff that the company’s survival is “at risk”.
The company blames low-cost Chinese LCD panels pushing prices down. The average price of a panel has fallen 20-30 per cent from a year ago.
Locally, analysts are suggesting that LG Display should cease investing in LCD displays. However, the anxiety is that consumers, attracted by low-priced Chinese-made panels and TV sets will place challenges on the sustainability of LG’s OLED production.