LG Display pivoting to higher-margin business of car and phone displays

LG Display Co.‘s automotive display [Photo provided by LG Display]

South Korea’s LG Display Co. is rapidly changing its product portfolio to higher-margin smartphone and automotive displays from those for TVs and monitors.

The company’s mobile and vehicle display products are expected make up for more than 40 percent of total sales for the first time this year, an increase from 26 percent in 2021, according to sources on Sunday. Sales from these products are expected to increase steadily, reaching 10 trillion won ($7.58 billion) this year, which is a significant growth in just two years.

LG Display had focused on medium-sized display products for IT devices such as monitors, laptops, and tablets, which had accounted for over 40 percent of sales. But the company’s mainstay business line will shift to small displays for smartphones and vehicles this year.

LG Display sees orders from large multinational companies increase fast, with the prominent product being OLED panels for iPhones. According to the market research firm DSCC, LG Display’s share of OLED panels for iPhone 14 has been increasing for seven consecutive months. Since October, LG Display has been supplying high-end LTPO OLED panels for the premium iPhone 14 Pro Max in large quantities. DSCC predicts that LG Display’s market share will expand even further for the upcoming iPhone 15 series, set to be released in the latter half of this year.

While LG Display’s cumulative share in previous iPhone series was estimated to be 18 percent, the figure is expected to rise to 28 percent for iPhone 15.

LG Display’s vehicle display business is also growing at a fast pace helped by the rising trend toward electrification of cars. The industry expects sales will more than double to 3.5 trillion won in 2025 from 1.6 trillion won in 2022.

LG Display’s annual vehicle display order will continue to grow at a double-digit rate each year. Last year, orders for LG Display’s vehicle displays reached around 4 trillion won to 5 trillion won, which is about 40 percent higher than in 2021.

LG Display aims to increase the sales proportion of its smartphone and vehicle display businesses to 50 percent by next year to establish a stable revenue structure.

Since 2021, LG Display has been investing more in the production of 6th generation small and medium-sized OLED panels at its Paju plant in Korea to ensure a stable supply of small display products for smartphones and vehicles.