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LCD pricing and AIT screens in advance of earnings ?3

LCD panel prices have continued to decline in July, which is likely affecting LPL.  However, the largest price drops are for mobile phone displays (2-5% vs 1% for most other types).  This means the impact should be muted for LG Display, compared to Samsung or other smaller suppliers.  Indeed, part of the pricing pressure may be due to anticipation of LGD's new AIT panels for notebooks.  These screens offer:
  • Better touch screen performance.
  • Slimmer, lighter screens, with narrower bezels and improved durability.
  • Less reflectivity, for greatly improved outdoor visibility.

We've seen a few of these screens in mobile phones, but mass production is just beginning this month in order to fill demand for products that will ship with Windows 10, which is touch-optimized.  LG Display has already agreed to supply 15.6-inch and 14-inch panels to several global notebook PC brands, and the company is engaged in active discussions with customers to supply different panel sizes.

LG Display should be reporting in two weeks.  Consensus is for earnings of 55 cents per ADR on revenue of $6.3b.  I'll be more interested in guidance (analysts are modelling $6.8b in revenue for 3Q15) and updates on AMOLED yields and deals than the second quarter figures.