According to recent reports from Korean media, LG Display (LGD) is caught in a tough squeeze - pressured from above by industry leader Samsung Display (SDC) and from below by fast-rising Chinese competitor BOE.
Although LGD has finally returned to profitability in the first half of this year, many in the industry believe this is only a short-lived breather. The company may have just one year of relative breathing room before facing much tougher challenges.
The good news right now comes partly from Apple. Industry sources say LGD will supply LTPO OLED panels for all three models of the upcoming iPhone 17 series (6.3-inch standard, 6.6-inch Air, and 6.9-inch Pro Max), a significant expansion from its previous role of supplying only the Pro models.
This change happened because Apple shifted the 6.3-inch Pro model's LTPO OLED orders to BOE. Even so, LGD's total shipment volume for the iPhone 17 series is expected to increase substantially - by an estimated 7 to 8 million units compared to the previous generation. Combined with gains from selling its Guangzhou LCD factory, this helped LGD swing to a healthy operating profit of about 653.7 billion KRW in the first half of the year.
But the underlying situation remains concerning.
LGD's top 10 customers still account for roughly 90% of total sales, with Apple and Samsung Electronics' Visual Display division being the two biggest. The problem? Both companies regard Samsung Display as their go-to, almost irreplaceable partner for high-end OLED panels.
Samsung Display has long been the exclusive developer and supplier of small-to-medium OLED panels for the Galaxy series, giving it a technological edge that LGD struggles to match at Apple's most demanding specifications. At the same time, LGD is losing ground on price competitiveness - BOE is reportedly achieving industry-leading yields (around 80%) on its LTPO OLED production lines, allowing it to offer much more attractive pricing.
In short:
- LGD lags behind Samsung Display in terms of premium technology and pricing power
- It lags behind BOE in cost competitiveness and value-for-money
Meanwhile, growth in the large-size OLED TV panel market - once considered LGD's stronghold - has slowed significantly.
Many analysts now believe LGD's real "golden window" for turning things around is likely to close by the second half of next year. Starting in late 2026, Apple's major OLED supply roadmap becomes very uncertain, and LGD's position could weaken further.
Worse still, the company currently lacks the financial flexibility to invest aggressively in future growth areas, especially the promising automotive OLED market.
Despite significantly cutting capital expenditure (CAPEX) through a "select and focus" strategy, LGD's cash flow generation remains weak. The company still relies heavily on external borrowing, with annual interest expenses expected to exceed 1 trillion KRW this year. Under these conditions, meaningful investment in new businesses like automotive panels looks very difficult.
Industry observers point out the painful irony: without taking risks to enter emerging markets, LGD can hardly secure future market share. But because of the very same financial constraints, it's already missing critical investment windows.
The situation is becoming even more urgent in the IT sector. Samsung Display, BOE, and TCL CSOT have all announced plans to move into next-generation 8.6th generation OLED production, while LGD has yet to commit to any major investment decision. Many fear the company is also at risk of missing the coming upgrade cycle in the IT display market.
For LG Display, the clock is ticking faster than ever. The brief moment of profitability may be real - but it could prove to be very short-lived.
