The Coronavirus pandemic is a big cause for global concern and its effects are already visible on various economies and industries. The smartphone OEMs are no exception to its ill effects either, as Huawei already reported on a sizeable loss of revenue growth earlier today (22nd April 2020). Now, Samsung Display is expected to reveal its own operating losses for the first quarter of 2020.
According to a new report, Samsung Display, the smartphone display manufacturing leader, will reportedly see a significant loss in the Q1 of 2020. For those unaware, the South Korean company makes panels for PC monitors, laptops, smartphones, and TVs. However, their operating loss is calculated to be around 378 million US Dollars, while their overall revenue during the same period is around 5 billion US Dollars.
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The dominating reason for this massive loss is undoubtedly the ongoing Coronavirus pandemic. In the company’s home country, South Korea, various production lines and manufacturing sites had to be closed down. This paired with the fall in demand for smartphones and TVs during this period of crisis only further worsened the condition. Furthermore, Samsung Display recently announced that it is effectively shutting down its LCD manufacturing lines completely, which could be one of the leading areas where the company was seeing losses.
According to an official statement, Samsung is moving over from LCD and investing in the upcoming quantum dot technology for displays. Similar to Samsung Display, the smartphone division is also facing the same predicament, with its latest flagship series launching on the onset of the global outbreak. So, it can be expected that most OEMs will incur losses for the next few months.
