Apple iPhone 16 Sales Fall Short of Expectations, LG Display's Performance May Suffer
Apple iPhone 16 Sales Fall Short of Expectations, LG Display's Performance May Suffer
Apple iPhone 16 Sales Fall Short of Expectations, LG Display's Performance May Suffer
According to KoreaTimes, initial sales of Apple's iPhone 16 series have fallen short of expectations, raising concerns for South Korean display manufacturer LG. It is anticipated that the company's performance in the second half of 2024 will be impacted.
Analysts suggest that while the iPhone 16 initially sold out rapidly in markets including China, the US, and South Korea, this is due to lower initial inventory levels compared to 2023, making it a temporary phenomenon. Global pre-orders for the iPhone 16 series saw an actual decline of approximately 13% compared to the iPhone 15.
While Samsung's display division supplies roughly twice the amount of panels to Apple compared to LG, it appears to be less affected by the iPhone's sales performance. This is because Samsung supplies panels to numerous other smartphone manufacturers besides Apple, whereas LG is more reliant on "fruit chain" (referring to Apple's supply chain).
Referencing the corresponding company financial reports, in the second quarter of 2024, Samsung's display division generated revenue of 7.65 trillion Korean won (approximately 408.74 billion yuan) and an operating profit of 1 trillion Korean won (approximately 53.43 billion yuan). LG, in the same period, recorded revenue of 6.7 trillion Korean won (approximately 357.98 billion yuan) but suffered a substantial operating loss of 937 billion Korean won (approximately 5.01 billion yuan). Therefore, LG's performance data for the second half of 2024 is crucial.
The lower-than-expected iPhone 16 sales pose a significant blow to LG's display division. If LG cannot effectively alleviate its dependence on Apple, its future prospects face a severe challenge.
Tag: Apple iPhone Sales Fall Short of Expectations LG Display
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