Samsung Display 2015 Performance
The Display Panel segment posted 6.53 trillion won in consolidated revenue and 300 billion won in operating profit for the quarter.
In the fourth quarter, the LCD panel segment saw a earnings decline QoQ due to a decrease in shipments of large-size panels and continued decline in Average Selling Price (ASP). For OLED panels, positive factors such as increased shipments and improved line utilization were hampered by a decline in ASP brought on by an expansion in the proportion of mid- to low-end panel sales.
Looking to the first quarter, the LCD market will likely be affected by intensifying competition among panel makers and declining demand due to weak seasonality. In response to these challenging conditions in the first quarter and beyond, Samsung will focus on improving cost efficiency and inventory management while also continuing efforts to expand its customer base.
As for OLED panels, due to an expected slowdown in the smartphone display market in the first quarter, Samsung will concentrate on reinforcing cost competitiveness and promptly responding to market demand for new product releases by key customers. Throughout 2016, the company expects smartphone momentum to slow YoY, with most growth coming from low-end products.