Positive mentions of OLED as profit driver with increased shipments this past quarter (slide 3) and increased demand for new smartphones in the outlook (slide 5). Unfortunately, no mention once again of tablets or larger screens on the slides. (Not new but I always hope.)
Looking at the results the DP division saw sales decrease YoY from 8.54 to 7.51 trillion won. This is clearly due to LCD. Nevertheless profits from the division rose from .23 to .77 trillion won. There is typically a question and answer which breaks out what part of the profit comes from OLED.
These are my unedited notes taken during the real-time translation.
DongKoo Lee’s title is VP of Business Planning: His opening sentence for the DP segment, “Oled panel maintained solid performance.” (Leading with OLED is new and a hilight.)
DongKoo's discussion of Results:
Small medium size, OLED continued its growth momentum.
DongKoo's discussion of Outlook:
No mention of OLED TV. High-End smartphones to drive OLED. R&D for OLED for future products. This seemed to be a nod to the delay, but ultimate plan for television (my gloss).
Q1: JP MORGAN: Asked about flexible display while noting LG’s plans to introduce a product in 4Q. Declined to comment on the ramp/roadmap.
Q2: Slight delays of S4 have been reported. Is this caused by AMOLED ramp of high pixel density displays? No problems with S4 supply. Slight delays in some markets simply caused by higher than expected demand.
Q3: Overall smartphone demand to increase 30%.
Q4: CapEx upside potential for 2H versus 1H. OLED profit contribution to DP segment? Answer unclear, but similar to last quarter.
Q5: Rumored delay on Flexible Displays questioned as regards differentiation. No direct answer.
At least three questions on Flexible displays. In all cases they stated that they would not comment on product roadmaps.
A few questions on the allocation of CapEx. Samsung consistently declined to answer.
Overall, not too much to learn, but the importance of OLED was hilighted within the DP segment, and interest in CapEx continues to point to its ultimate inevitability and predictable delays in implementation.
Great notes. Unfortunately, Samsung has completely changed in terms of their investor communications. Years ago, they would do a two hour call in English and answer every single question with numbers. They would give their fab capacity numbers, handset shipments, detailed margins etc.
Now, they wont even give a total capex number for 2013.
In any case, the general comments were positive. On a short-term basis, the fact that OLED shipments were up sequentially is a very good sign for PANL's 1st quarter. The market is only looking for a sequential increase of a little over $1 million (excluding license fees). You dont need many S4 shipments to hit that target if total OLED shipments were also up.
Interesting to me, the VP from DP presenting is Mr. DongKoo Lee. Last quarter it was Chang Hoon Lee.
The DP speakers have always treated the SMD/OLED side of the business as an afterthought. It was always interesting to see the dynamics as they renamed the division from LCD to DP, then rolled it into a separate company with an emphasis on OLED. The power dynamics have been fun to watch from a distance for the last several years.
We'll see whether the emphasis changes in the presentation.