Galaxy S24 and iPhone 15 Success... Display Industry's Earnings Expectations UP

S24 Panel Cumulative Shipments Up 21% Compared to Previous Model
Samsung D Expected to Overcome Seasonal Slump

LGD Returns to Profit in Q4 Last Year
Mobile Panel Share Grows to 44%

The domestic display industry is raising expectations for performance, buoyed by the success of flagship smartphone new products. Samsung Display is expanding its supply of organic light-emitting diode (OLED) panels for Samsung Electronics' 'Galaxy S24', while LG Display is increasing its supply for Apple's 'iPhone 15' series, responding to the global demand downturn tunnel.

According to the market research firm Display Supply Chain Consultants (DSCC) on the 15th, the cumulative panel shipments of the S24 series from November last year to January this year exceeded those of the previous S23 and S22 series by 21% and 66%, respectively. The cumulative panel shipments including March are estimated to be 13% higher than the S23 series and 47% higher than the S22 series.

Galaxy S24 Ultra Titanium Orange.
[Photo by Samsung Electronics]

The S24 series, released in January, broke the record for the highest pre-order sales in the Galaxy S series, surpassing 1.21 million units. The market estimates that the S24 sales in the first quarter of this year will increase by 66% compared to its predecessor, reaching 12 million units.

The sharp increase in S24 series sales is expected to lead to strong performance for Samsung Display. The S24 series is equipped with Dynamic Active Matrix Organic Light Emitting Diode (AMOLED) 2X displays, all of which are supplied by Samsung Display.

Despite the economic downturn last year, Samsung Display achieved its highest-ever quarterly operating profit of 2.01 trillion KRW in the fourth quarter. Although the first quarter is traditionally a slow season, this year’s strong sales of the S24 series are expected to ease performance burdens.

Customers are experiencing the iPhone 15 products at the Apple Store Myeongdong branch in Jung-gu, Seoul. Photo by Jinhyung Kang aymsdream@

LG Display also benefited from the iPhone 15 series, released in September last year. LG Display supplies OLED panels for the iPhone 14 Pro Max model.

LG Display posted an operating profit of 131.7 billion KRW in the fourth quarter of last year, turning profitable for the first time in seven quarters since the second quarter of 2022. This was due to the rapid growth of mobile panels accounting for 44% of LG Display’s sales in the fourth quarter, up from the 20% range in the first to third quarters. Earlier, there were concerns that the supply approval for OLED panels used in the iPhone 15 Pro Max might be delayed, potentially leading to lower supply than expected, but these worries were alleviated as a significant volume of panels was shipped in the fourth quarter.

The volume of TV panels supplied to Samsung Electronics also increased. According to industry sources, LG Display recently agreed on a long-term supply contract with Samsung Electronics for OLED and LCD panels. Under this contract, LG Display is expected to supply 5 million W (White)-OLED panels to Samsung Electronics over the next five years. The supply volume for this year is estimated to be around 700,000 to 800,000 units, which is up to eight times more than the estimated 100,000 to 200,000 units supplied last year.

The outlook for the display industry this year appears to be somewhat recovering. According to the Business Survey Index (BSI) results from the Korea Institute for Industrial Economics & Trade, which recently surveyed domestic manufacturers, the BSI for the display sector in the fourth quarter of last year rose 18 points from 84 in the previous quarter to 96. In particular, the sales outlook for the first quarter of this year recorded 103 for the display sector, up 6 points from 97 in the previous quarter, surpassing the baseline of 100. A BSI above 100 means that more companies view the outlook positively compared to before.