Apple's iPhone 16 Series' Sales Impact on LG's Performance

TapTechNews October 2nd news, according to the foreign media KoreaTimes report, the initial sales of Apple's iPhone 16 series mobile phones are lower than expected, deepening the worry of the South Korean display manufacturer LG, and it is expected that the performance of LG company in the second half of 2024 will be affected.

SK Securities analyst pointed out that although the iPhone 16 was initially sold out quickly in places such as China/US/South Korea, this is because the supply of the iPhone 16 in stock is lower than that in 2023, so this is a 'temporary phenomenon'. Compared with the iPhone 15, in fact, the global booking volume of the iPhone 16 series mobile phones has decreased by about 13%.

On the surface, the amount of panels shipped by Samsung's display department to Apple is about twice that of LG, and it seems to be more affected by the sales performance of the iPhone. However, in fact, Samsung is less affected, because in addition to supplying to Apple, Samsung also ships screens to many competitors, while LG company is more dependent on the 'Apple supply chain'.

Referring to the corresponding company's financial report, in the second quarter of 2024, the revenue of Samsung's display department is 7.65 trillion Korean won (TapTechNews note: currently about 40.874 billion Chinese yuan), and the operating profit is 1 trillion Korean won (currently about 5.343 billion Chinese yuan).

While the revenue of LG's display department in the same period is 6.7 trillion Korean won (currently about 35.798 billion Chinese yuan), but the operating loss is 937 billion Korean won (currently about 501 million Chinese yuan), so the performance data of LG company in the second half of 2024 is crucial.