Apple unveiled new products, including its first foldable smartphone, the iPhone Duo. Expectations for the performance of Samsung Display and LG Display, which supply organic light-emitting diode (OLED) panels, which are key components, are also growing in the second half of the year.
According to the industry on the 13th, Apple held a new product launch event at Apple Park in Cupertino, California, USA on the 9th (local time) and unveiled the iPhone Duo and iPhone 18 Pro and Pro Max.
The iPhone 18 Pro and Pro Max are equipped with OLED panels from Samsung Display and LG Display. It is known that the iPhone Duo, which Apple first introduced, will be entirely supplied with Samsung Display's foldable OLED.
Typically, panel supply for Apple's new iPhone increases from the third quarter and peaks in the fourth quarter, so the performance increase of Samsung Display and LG Display is expected to increase as the second half of the year progresses.
In particular, Samsung Display is expected to gain further momentum in performance improvement by securing new demand for the iPhone Duo in addition to the existing iPhone.
According to the forecasts of major securities companies, Samsung Display's sales in the second half (3rd to 4th quarter) are expected to be 17 to 18 trillion won and operating profit to be in the 2 to 3 trillion won range. This is significantly higher than the 1.1 trillion won operating profit estimate for the first half of the year.
The increase in shipments of panels for major smartphones such as Samsung Electronics' Galaxy Z Fold and Flip series, along with the expansion of OLED supply for iPhones, are expected to boost performance.
The key is the sales volume of the iPhone Duo. As it is an expensive first-generation foldable product with a domestic shipping price of 3.29 million won, there are speculations that Apple may adjust production and shipment volume depending on initial market reaction.
However, the industry does not believe that Samsung Display's performance in the second half of the year will be significantly shaken even if iPhone Duo sales volume falls somewhat short of expectations. This is because the supply of OLED for existing iPhones is solid, and panels are also being supplied to smartphones from other companies, including Samsung Electronics.
An industry insider said, "As foldable OLED requires high technology, it will not be easy for competitors such as Chinese panel makers to enter Apple's supply chain and compete with Samsung Display in the short term. If the iPhone Duo settles in the market, there is a possibility that Apple's future expansion of the foldable lineup will lead to a mid- to long-term benefit for Samsung Display."
LG Display is also expected to see strong performance in the second half of the year thanks to the effects of the new iPhone product.
According to securities firms, LG Display's sales are estimated to increase by more than 20% from about 11.1 trillion won in the first half of the year to 13.7 trillion won in the second half. Operating profit is also expected to increase from 39 billion won in the first half to around 900 billion won in the second half.
In particular, sales in the mobile sector, which includes OLED for smartphones, are expected to increase by 47% compared to the first half of the year, from KRW 3.8 trillion to KRW 5.6 trillion.
Although operating profit by business division is not disclosed, increased sales in the mobile division due to increased supply of OLED panels for iPhone are expected to drive performance in the second half of the year.
Attention is being paid to whether Apple's lineup-distributed launch strategy will alleviate the panel industry's 'high and low' seasonality.
Meanwhile, as Apple has been releasing new iPhones intensively every September, domestic panel makers have also shown significant improvement in performance in the second half of the year compared to the first half.
However, as Apple dispersed the release timing by sequentially releasing the professional model in the second half of the year and the standard model in the first half of the following year, there is a greater possibility that demand for OLED panels for iPhone will be partially distributed to the first half of the year.
An industry official said, "LG Display is highly dependent on Apple in the mobile OLED business, so it is affected by the iPhone release schedule. If the supply of regular iPhone panels continues in the first half of the year, the supply gap will be reduced, which may ease the existing high and low trend."
