Shares of LG Display fell 6.7 percent Friday on a news report that Samsung Display had signed a deal with Apple to supply organic light-emitting diode displays for the next iPhones.
The Samsung displays are expected to replace the liquid crystal display panels used in the current iPhones that are produced by LG Display. LG currently produces almost 40 percent of the iPhone display panels.
LG Display CEO Han Sang-beom
Even though the Samsung-Apple deal had largely been expected, it seems unavoidable that it would have a negative impact on LG Display’s profits in the future.
According to the news report, Samsung will supply an annual 100 million OLED panels, worth 3 trillion won ($2.6 billion), to Apple from the second quarter next year for three years.
Despite its leadership in larger OLEDs that are used for TVs and digital signage, LG has little presence in the smaller OLED market that is currently dominated by its archrival Samsung.
On Friday, LG Display shares ended at 25,050 won.
By Lee Ji-yoon (email@example.com