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LG Display benefits from strong sales of Apple's smartwatches

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By Baek Byung-yeul

LG Display CEO and Vice Chairman Han Sang-beom

Korean display maker LG Display topped the world's AMOLED display market for smartwatches last year thanks to strong sales of Apple's smartwatches.

According to market researcher IHS Markit, Monday, LG Display shipped 10.64 million units of AMOLED panels last year to top the global AMOLED display market for smartwatches. LG took a market share of 41.4 percent.

LG Display is followed by Samsung Display, who took a market share of 34.8 percent after shipping 8.95 million panels. China's EverDisplay Optronics and AU Optronics were third and fourth with market shares of 16.2 percent and 5.7 percent, respectively. Beijing-based OLED maker BOE was fifth after shipping 380,000 panels.

LG Display could sit at the top of the list thanks to the strong presence of Apple Watch. Last year, LG and Samsung supplied a total of 14.75 million AMOLED display panels for smartwatches to Apple and LG's panels accounted for more than 70 percent after shipping 10.64 million units.

Apple Watch is considered the most popular smartwatch on the market. According to market researcher CCS Insight, the wearable technology market is estimated to grow to $29 billion by 2022.

It predicted that 71 million smartwatches will be sold this year and the figure will double to 140 million by 2022. An estimated 16 million Apple Watch products are expected to be sold this year, up 60 percent from last year. An LG Display official said the tie with Apple will contribute to the company's sluggish performance.

LG Display has struggled with weak display prices. It posted an operating loss of 98.3 billion won ($88.2 million) in the January-March period of this year. Analysts estimate the company's operating loss in the second quarter will exceed 200 billion won.

To turn its struggling business around, LG Display will soon supply its OLED displays to Apple, according to industry watchers. Though LG Display didn't confirm it, the number of OLED displays will be between 3 million and 5 million.