Samsung Electronics on Wednesday reported weaker than expected results in its display business in the period from October to December 2017, affected by weak sales of Apple’s iPhone.
Samsung said it posted an operating profit of 1.41 trillion won ($ 1.31 billion) in the segment, with high-precision organic light-emitting diode panels in the quarter, up 5% from a year earlier. , but lower than the projections of 400 billion won to 500 billion won
Many analysts in South Korea had previously projected a gain of 1.8 trillion won to 1.9 trillion won.
Earlier this year, NH Investment & Securities reduced its initial projection, noting that sales of OLED panels to Apple had not met expectations. But the announced benefit was even lower than the revised forecast at around 200 billion won.
Samsung exclusively offers organic OLED panels for Apple’s iPhone X. Apple is expected to reduce its January-March production target for the high-end smartphone model in half because its high price of more than $ 1,000 has resulted in sales slower than expected. Some analysts said that Samsung’s earnings in the first quarter of this year might not reach market forecasts of 400 billion won or more.
Samsung Display will deal with a decline in the supply of OLED displays to Apple by expanding deals with Chinese and other users globally, the top official of the manufacturer said on Wednesday.
Samsung Electronics recorded an annual operating profit of 53 trillion won from general operations thanks to strong sales of memory chips. While the impact of the weaker-than-expected performance of the screen division is limited, Samsung’s high stock prices will be adversely affected as they have taken into account the growth of the OLED display business.