The Apple supplier posted an operating profit of 44 billion won (41.2 million U.S. dollars) from October to December last year. According to Thomson Reuters I / B / E / S survey, 12 analysts on average expected the company's quarterly operating profit of 250 billion won.
This is the lowest quarterly operating profit of LG Display since the second quarter of 2016.
"The downturn in panel prices is expected to continue, but the price is expected to stabilize at the end of the first quarter," said CFO Don Kim in the statement, adding that panel shipments in the first quarter may decline due to off-season factors Nearly 10%.
Analysts said the weak demand, coupled with the latest AppleiPhoneModel OLED panels to replace the LCD panel, the company quarter sales of LCD panels lower than the previous year.
According to WitsView, the price of LCD TV panels dropped 20% to 40% last year, while prices of the previous year were exacerbated by the demand for large-size TVs.
However, WitsView said that with the rebound in TV shipments, coupled with the lower panel prices to stimulate TV manufacturers to step up stocking, price cuts may ease in 2018. In addition, as the new production lines of BOE and other companies gradually improve their production quality, supply and demand will also be more balanced.
LG Display also dominates the TV OLED panel market, but its competitor Samsung Electronics' display business dominates the small-size OLED panel market for mobile phones - LG Display now also seeks to penetrate the field.
South Korea approved LG Display's plan to build an OLED panel plant in China last December, hoping to expand its OLED business and march into the smartphone OLED panel market.