LG Display's profits grow, but reports cite 'weakened' demand for Apple's iPhone & iPad

Posted:
in General Discussion edited January 2014
LG Display reported its fourth straight profitable quarter on Monday with a year over year increase, but numerous reports took a negative spin on the news because of the company's close relationship with Apple.

It's believed that Apple accounts for about 30 percent of LG Display's revenue, which is why a number of outlets on Monday chose to focus on the iPhone maker following LG's earnings report. Apple will report its own earnings on Tuesday.

iProducts


LG had an operating profit of 151 billion won in the first quarter, a major turnaround from the loss of 211 billion won the company saw a year ago. But a report from Reuters focused on LG's sequential, seasonal loss of 74 percent from the holiday quarter, and cited "weakened" demand for iPhone and iPad displays.

The report was not alone: London's Financial Times also made note of "concerns about falling sales" from Apple, while the Associated Press made claims of apparent "slackening orders" from the iPhone maker.

In contrast, the story was portrayed much differently by The Wall Street Journal, which focused on the fact that LG had "swung to a net profit in the first quarter." Reporter Min-Jeong Lee also cited "increased" sales of iPad displays to Apple.

For its part, LG said the quarter over quarter fall in profits was due to seasonally weak demand and adjusted orders made by customers.

LG also expects its panel shipments to increase between 5 percent and 10 percent in the second quarter of 2013. Market watchers view that as likely to be good news for Apple, given its large share of LG's orders.

Apple Chief Executive Tim Cook warned market watchers in January that they should not attempt to decipher sales of major products such as the iPhone with data from its suppliers. He noted that the supply chain is "very complex" and that Apple has "multiple sources" for various components.

"Even if a particular data point were factual, it would be impossible to interpret that data point as to what it meant for our business," he said.
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Comments

  • Reply 1 of 88
    zoffdinozoffdino Posts: 192member
    Hey LG makes screens for Google Nexus too, perhaps it was the model that didn't sell well and had to see its order reduced. But it has to be Apple who cut the orders, huh?

    Really, all three sources are simply speculating on what Apple might have done (if they did anything). The FT and Reuters say that was due to order cut. The WSJ says it's supplier diversification. So far, LG hasn't said anything, so it was a best an analyst's guesting game.
  • Reply 2 of 88
    solipsismxsolipsismx Posts: 19,566member
    zoffdino wrote: »
    Hey LG makes screens for Google Nexus too, perhaps it was the model that didn't sell well and had to see its order reduced. But it has to be Apple who cut the orders, huh?

    Really, all three sources are simply speculating on what Apple might have done (if they did anything). The FT and Reuters say that was due to order cut. The WSJ says it's supplier diversification. So far, LG hasn't said anything, so it was a best an analyst's guesting game.

    For all the doom and gloom the analysts and trolls shove onto Apple the fact that hardly any other company gets mentioned when these vendors have dozens if not hundreds of customers is proof that Apple still holds all the cards when it comes to mindshare.
  • Reply 3 of 88
    jpvnjpvn Posts: 40member
    Apple should not have any conference call this Tuesday.. everyone knows everything already? i mean they value the stock depending on what other company's report?
  • Reply 4 of 88
    igrivigriv Posts: 1,177member

    Quote:

    Originally Posted by SolipsismX View Post





    For all the doom and gloom the analysts and trolls shove onto Apple the fact that hardly any other company gets mentioned when these vendors have dozens if not hundreds of customers is proof that Apple still holds all the cards when it comes to mindshare.


     


    The story mentions the fact that Apple is responsible for 30% of LG's display business, so I don't think this is about mindshare. It seems clear that Apple will not have a great quarter (all of the supply chain indications are negative), but on the bright side, this seems priced into the stock at this point.

  • Reply 5 of 88
    charlitunacharlituna Posts: 7,215member
    This is a drop from holiday quarter, yes? Then no poop Sherlock. Holiday is Apple's (any retails) biggest quarter. It's like 60% of yearly sales in that six weeks. Plus launch quarters are like 70-80% of sales for new iDevices.

    So of course demand is less now. Both for the devices and for screens. Particularly since Apple won't be ordering an extra 30-40% to make sure any fails for QA don't hold up unit production. But the analysts don't think of this and instead spin it like folks are buying the Note, Nexus, Surface instead. And THIS is that kills the stock. By itself and the implication that Apple could have sold more, no matter how much they sell.
  • Reply 6 of 88
    charlitunacharlituna Posts: 7,215member
    jpvn wrote: »
    Apple should not have any conference call this Tuesday.. everyone knows everything already? i mean they value the stock depending on what other company's report?

    Feels like it. Pity legally Tim has to release the numbers. But perhaps he should kill it off with a dose of the reality I mentioned previously. And maybe a request to the analysts to post facts with verified and named sources or STFoxtrotU
  • Reply 7 of 88
    Reuters bank accounts probably will tell the truth .
  • Reply 8 of 88
    igrivigriv Posts: 1,177member

    Quote:

    Originally Posted by crazy_mac_lover View Post



    Reuters bank accounts probably will tell the truth .


    ?

  • Reply 9 of 88
    flaneurflaneur Posts: 4,510member
    igriv wrote: »
    . . . I don't think this is about mindshare. . . .

    . . . says the resident serial manipulator of our minds.

    Insert "attempted" in there somewhere.
  • Reply 10 of 88
    al_bundyal_bundy Posts: 1,525member

    Quote:

    Originally Posted by jpvn View Post



    Apple should not have any conference call this Tuesday.. everyone knows everything already? i mean they value the stock depending on what other company's report?


    every public company is like that


     


    wall street maps out the company's products to their suppliers and customers and uses the numbers to predict earnings. they are accurate most of the time


     


    if you have the resources its not rocket science to predict apple's earnings and revenues

  • Reply 11 of 88
    bdkennedy1bdkennedy1 Posts: 1,459member


    Market is getting saturated.

  • Reply 12 of 88
    Another useless comment by an analyst who doesn't seem to get that component orders don't track with quarterly sales.
  • Reply 13 of 88

    Quote:

    Originally Posted by EricTheHalfBee View Post



    Another useless comment by an analyst who doesn't seem to get that component orders don't track with quarterly sales.




    Unless they do in this case.


     


    I wouldn't say too much at this point... we only have a day to wait.

  • Reply 14 of 88
    tallest skiltallest skil Posts: 43,399member


    Originally Posted by Flaneur View Post

    Insert "attempted" in there somewhere.


     


    Oh, what do you call two crows?


     


    Attempted murder. image






    Originally Posted by bdkennedy1 View Post

    Market is getting saturated.





    Not in the slightest.

  • Reply 15 of 88
    jungmarkjungmark Posts: 6,705member
    I'm surprised analysts didn't link McDonald's performance to Apple. "Sales fall at McD's. people aren't interested in Dollar Menu = lack of disposable income = no one can afford iDevices = iPad mini sales fall YOY"
  • Reply 16 of 88
    jungmarkjungmark Posts: 6,705member
    al_bundy wrote: »
    every public company is like that

    wall street maps out the company's products to their suppliers and customers and uses the numbers to predict earnings. they are accurate most of the time

    if you have the resources its not rocket science to predict apple's earnings and revenues

    If WS is so accurate, why haven't they accurately predicted the success of Apple in the last 10 years?
  • Reply 17 of 88
    hill60hill60 Posts: 6,991member

    Quote:

    Originally Posted by igriv View Post


     


    The story mentions the fact that Apple is responsible for 30% of LG's display business, so I don't think this is about mindshare. It seems clear that Apple will not have a great quarter (all of the supply chain indications are negative), but on the bright side, this seems priced into the stock at this point.



     


    ...and what percentage of Samsung's screen business, oh and Sharp's screen business?


     


    Maybe the SEC should start looking into all the bullshit going on with all these articles which are affecting Apple's stock and see who is behind them.


     


    My guess is a South Korean based company with an open chequebook to pay off bloggers.


     


    Apple don't own the stock, why should they give a f*ck, their focus should be to just keep on making and selling great stuff.

  • Reply 18 of 88
    bleh1234bleh1234 Posts: 146member
    Apple is NEVER at fault.
  • Reply 19 of 88
    tallest skiltallest skil Posts: 43,399member


    Originally Posted by bleh1234 View Post

    Apple is NEVER at fault.


     


    Prove they are, then.

  • Reply 20 of 88
    gatorguygatorguy Posts: 20,748member

    Quote:

    Originally Posted by jungmark View Post



    I'm surprised analysts didn't link McDonald's performance to Apple. "Sales fall at McD's. people aren't interested in Dollar Menu = lack of disposable income = no one can afford iDevices = iPad mini sales fall YOY"


    I'm surprised too! A few years back some of the Apple products at McDonald's had to be recalled due to listeria fears. 

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