LG Display Co., Ltd. (NYSE:LPL) Q4 2022 Earnings Call Transcript

It’s more appropriate as a solution product. So, that is why it is important for us to build the right ecosystem and that is why we are currently discussing with and also cooperating with the important key vertical partners. By doing so, we hope to keep building up the ecosystem and see and achieve visible progress and outcome within the year. Next is about the sound solution. Now, usually speakers would require space to be installed. But unlike the traditional products, we have come up with the film type sound solutions that will take up less space and this is the solution that also won the Innovation Award at the CES. And we believe that there is a particular value to be gained in applications where the space is limited, in other words, automotive.

So, the automotive sector is where we are going to concentrate with our film type sound solution. It can be provided together with OLED or as I mentioned earlier in automotive or vehicles where the space is limited.

Brian Heo: Thank you. We will take one last question.

Operator: The last question will be presented by from Bank of America. Please go ahead with your question.

Unidentified Analyst: Now, I also have two questions. And first of all, thank you very much for the presentation. Now, it appears as if the company’s trajectory is headed towards Gen 6 OLED. But even in this business demand, it is not probably easy to come by. Because first of all, there are competitors and also there is BOE. And also, the tablet prices remain lower than smartphones. Now, given the current environment, then what is the rationale for the company to believe that the company will be able to have €“ we will be able to drive sales in discussions with the clients for the high priced OLED products? And the second question is about the recent press reports about the micro OLED and that there have been reports about how the micro OLED is likely to replace a small OLED in the near future. And of course, that is probably in 2 years to 3 years time, but what does the company see in terms of the possibility of the Gen 6 OLED panel being replaced by micro OLED?

Hee Yeon Kim: Thank you. This is a CSO, Hee Yeon Kim and I will be responding to both questions. Second question first, about the press reports on micro OLED, I do not believe that the company is in the position to respond to this particular question. By having said that, in any market, there are always alternative technologies. And for the TV market as well, there are both OLED and micro LED. And I believe that there is a market size to accommodate both and the company has been responding to a decent development quite effectively. Likewise, there are different technological options available in the mobile sector as well. So, the company has been making preparation for different types of technology and when there is business case to be made and business visibility and if there are any visible potential within negotiations with the customers then, of course, we will move ahead with this.