LG Display suffered a great loss in their sales at the beginning of the year, not a very good news for them and their employees.
The LG company is the leading supplier of LCD screens to Apple Devices, but the latter decided to use OLED screens from Samsung Electronics Co. for its newest product iPhone X. Due to this, LG’s mobile revenue has decreased by over 32 percent of what they have been gaining from the past.
The loss caused the company to decide on labor cost reduction for the next few months as well as manpower restructuring within the company.
Following the said event, LG has decided to build an 8.5-generation OLED manufacturing plant in Guangzhou, China. Though the company has received approval from South Korea, their country of origin, the Chinese government seemed to be delaying the construction of the said manufacturing plant.
The delay in the construction has been a great hindrance to the company since they are focusing on OLED, as the market for LCD is nearing omission.
The company has seen great potential in the growth of OLED, especially now that some competitors are already on the lead when it comes to this industry. They have decided to invest 20 trillion won or about US$18 Billion in OLED even though there is a lot of risk factor on the surface.