On Monday, LG Display reported earnings for Q1 2013. And analysts are jumping to conclusions that today’s report may reveal more about Apple than LG itself.
LG, which reported its smallest profit since the company once again became profitable during the second quarter of 2012, has a close working relationship with Apple. In fact, analyst estimates suggest that Apple provides approximately 30 percent of LG Display’s revenue today. So when LG sees a softening in its numbers, that could mean that Apple is having a similar experience.
On the heels of LG’s earnings report today, some industry watchers are claiming that it could foreshadow weakened demand for iPhone and iPad screens.
According to Reuters, LG Display’s sales of tablet and smartphone panels, which primarily go to Apple, accounted for 27 percent of LG Display’s total screen shipments in Q1 2013. That represents a dip from 31 percent in the fourth quarter of 2012.
Jay Yoo, an analyst at Korea Investment & Securities, estimated before the results announcement that LG Display’s panel shipments for the iPhone 5 and the latest iPad had fallen 42 percent and 66 percent, respectively, from the prior quarter as Apple struggles with slowing sales growth.
MMW will bring you all the news and relevant details tomorrow when Apple reports earnings for the March 2013 quarter.
