StockCall Review on LG Display, Corning and Apple: Challenges Ahead as TV
Sales Slumps and Demand for iPhone Wanes
LONDON, January 28, 2013
LONDON, January 28, 2013 /PRNewswire/ --
On Wednesday, Apple Inc. (NASDAQ: AAPL) released its quarterly results.
Although the company sold record number of iPhones in its first quarter, sales
fell short of Street estimates. In addition, the technology giant also gave a
weaker-than-expected revenue outlook for the current quarter. This does not
augur well for LG Display Co. Ltd. (ADR) (NYSE: LPL), which relies heavily on
the iPhone. Another major concern for LG Display and rival Corning
Incorporated (NYSE: GLW) is declining TV sales. StockCall' analysts completed
the technical analyses on Apple, LG Display and Corning. These free reports
can be accessed by registering now at http://www.stockcall.com/signup
LG Display Reports Strong Q4 Results But Gives Disappointing Outlook
On Thursday, South Korea-based LG Display reported its fourth quarter
financial results. The company posted a profit of $299 million for the quarter
due to mobile product launches during the quarter, including from key customer
Apple. For the same period in the previous year, LG Display had posted a loss
after it was fined by European Union for price fixing. LG Display's sales for
the fourth quarter jumped 32% 8.74 trillion won. Get the free technical
analysis report on LG Display at http://www.StockCall.com/LPL012813.pdf
Although LG Display reported strong fourth quarter results, shares fell
sharply last Thursday and Friday as the company's outlook disappointed
investors. The company's CFO said in a statement that panel shipments in the
first quarter are expected to register a percentage drop in mid-teens compared
with the fourth quarter of 2012 due to seasonal factors. Another concern for
the company is fading demand for iPhones.
Late last Wednesday, Apple reported its much anticipated quarterly results.
While the company saw another record quarter, revenue for the quarter fell
short of consensus forecast. In addition, iPhone sales also fell short of
expectations, raising worries that the demand for the smartphone is fading.
Also, the company's revenue outlook for the current quarter pointed to fading
demand for iPhones. Apple technical report has been completed after Friday's
close for up-to-date analysis. Sign up now for your free download at
Apple, of course, is a key customer for LG Display and a weak outlook for the
iPhone maker does not augur well for the company. Also, it is widely believed
that Corning's Gorilla Glass is used in Apple products. So the weak Apple
outlook is also bad news for Corning Inc. [ Free Technical Report on GLW ] ^[
^(1) ^] .
Declining TV Sales also a Concern for LG Display and Corning
Another area of concern for LG Display and Corning has been declining TV
sales. In the third quarter of 2012, sales in Corning's Display Technologies
segment, which includes LCD glass business, fell 6% on a year-over-year basis.
In fact, Corning and LG Display have been banking on growth in the smartphone
market to offset declining sales in the TV market. However, Apple's
disappointing outlook is major concern for both companies. Still, the overall
smartphone market is expected to register strong growth this year, which is a
positive for both companies.
Corning Pinning Hopes on Gorilla Glass
At the time of the release of third quarter results in October last year,
Corning's CFO James B. Flaws noted that the company's Gorilla Glass is now
available on more than one billion consumer electronics devices around the
world, and has been a resounding success for the company. All eyes are now set
on Corning's fourth quarter results, which will be released tomorrow January
29 ^th before the opening bell.
1.Corning Inc. Technical Analysis [
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