Samsung has five main divisions: semiconductor, LCD, telecom, digital media, and appliances. In Q1’08, sales from its LCD division comprised 25%, unchanged from Q4’07. LCD sales were down 3% Q/Q but up 53% Y/Y to KRW4.34 trillion (US$4.32 billion). Operating profits were up 10% Q/Q and 1,278% Y/Y to KRW1.01 trillion with a healthy 23% profit margin, the highest among all of its divisions.
Samsung’s LCD division shipped 22.8 million large-size LCD panels in Q1’08, virtually unchanged Q/Q from 22.9 million in Q4’07, but up a substantial 54% Y/Y from Q1’07, when it shipped just 14.8 million. Samsung indicated steady shipments of notebook PC and LCD TV panels. LCD monitor panel shipments on the other hand were weak due to seasonality. In Q2’08, Samsung expects large-size LCD panel shipments to increase 8-10% with 40″ and larger sizes to account for 60% of LCD TV panel shipments.
Samsung did caution that LCD TV set inventory sell-through must be monitored. But the company is moving strongly to expand the portion of 40″ and larger sales to over 60% in Q2’08. Samsung also expects value-added features such as Full HD (1080p), 120Hz frequency, and LED backlight to increase. The company is also expecting pull-in demand in preparation for the Beijing Olympics. I think history shows that sporting events, no matter how popular or global, do not do much for overall demand for LCD TVs.
In terms of area shipments, LCD TV panels decreased from 55% to 53%. The 2% decrease was due to a 2% increase in notebook PC panel area shipments. LCD monitor shipments remained unchanged at 33% in Q1’08.
[tags]Display Manufacturer, LCD Manufacturer, Samsung, LCD Monitor, LCD TV, Notebook PC[/tags]