Apple display vendor LG has tapped its 5th consecutive quarterly loss.
As reported by Reuters:
South Korea’s LG Display Co Ltd reported its fifth straight quarter of operating losses on Thursday, hit hard as demand for smartphones and televisions slumped due to the coronavirus pandemic.
The operating loss for the first quarter ended March widened to 362 billion won ($294.70 million), from a loss of 132 billion won a year earlier, and compares with a Refinitiv SmartEstimate drawn from 19 analysts for a 390 billion won loss.
The Apple Inc supplier said revenue fell 20% to 4.7 trillion won.
In a statement, LG stated, “We expect volatility in demand to boost later on, as the COVID-19 breakout influences market fields.” It says that it anticipates this will certainly “inevitably stick around” nevertheless, LG continues to be hopeful that stay-at-home orders might drive demand for IT products.
Nasdaq additionally reports that experts have directed to a glut in the supply of LCD panels as competitors go back to manufacturing. The report notes that LG, like Samsung, intends to end the production of LCD panels by the end of the year.
While this is the fifth quarterly loss in a row for LG, the record indicate depression in demand for smart devices and also televisions driven by the coronavirus pandemic as the prime aspect behind one of the most current quarter’s decline.