LG Display (LGD) is accelerating the transformation of its revenue structure by focusing on high-value products such as large-size panels and OLEDs, amid a significant rise in average unit area selling prices and increased area demand, which has thus also raised expectations for improved profits at LGD.
According to Korean media outlets Financial News and Chosunbiz, citing LGD's investor relations briefing, the unit area selling price of LGD's panels rose from US$804 per square meter in the first quarter of 2025 to US$1,365 in the third quarter, an increase of more than 30%. However, the shipment area dropped by 27.8% during the same period, from 54 million to 39 million square meters.
Even though the overall shipment area decreased, the results show that LGD improved actual revenue by increasing the proportion of high-end, high-margin products. Industry insiders attribute the rise in unit area prices to a higher share of premium products with greater average selling prices, such as OLEDs. Despite a drop in sales volume, LGD's strategic shift toward highly profitable products has allowed revenue growth to continue.
LGD is currently concentrating on high-value products, including large-size OLED TVs, premium gaming OLEDs, and automotive plastic OLEDs (POLED). It also plans to sell its LCD factory in Guangzhou, China, in 2025, as part of its realignment of production capacity around OLED technology.
Industry analysts note that the panel sector continues to move toward larger sizes and higher-end offerings, with all manufacturers shifting their production focus to high resolution and high profitability.
LGD's OLED TV division expects operating margin to rise from the current 7% to 15% from 2026 onwards as depreciation expenses end. The company is now seeing a clearer trajectory towards improved earnings, following a successful turnaround to profitability in the second quarter of 2025.
In addition, LGD's performance gains may further benefit from LG Group's ongoing refocus on automotive electronics. Among the corporate group, LG Electronics, LG Energy Solution (LGES), and LG Innotek are actively expanding into automotive components, potentially creating synergies with LGD's panel operations.
Strengthening expectations in this regard, the heads of four LG Group subsidiaries have recently met Mercedes-Benz CEO Ola Källenius, which was then followed by reports that LGD will supply 40-inch ultra-large automotive panels for the 2026 Mercedes-Benz GLC EV.
Article edited by Jack Wu
