StockCall Review on LG Display, Corning and Apple: Challenges Ahead
as TV Sales Slumps and Demand for iPhone Wanes
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.
iPhone Worries
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 http://www.StockCall.com/AAPL012813.pdf
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
29th before the opening bell.
Footer:
- Corning Inc. Technical Analysis [
http://www.StockCall.com/CorningInc012813.pdf ]
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