The pandemic has boosted demand for LCD displays of many sizes, and Sharp has won through its partnership with Apple. A US customer receiving small LCDs from a Japanese supplier, reduced competition and strong demand for iPhones have allowed Sharp to increase its net profit by 290% in the past fiscal year.
As noted by the Nikkei Asian Review, for the twelve months prior to this March, Sharp posted a net profit of $ 487 million, which is 290% more than in the previous reporting period. According to the manufacturer’s forecast, in the current fiscal year, net profit should increase by another 43%. Demand for LCD panels is set to grow, Sharp expects. DSCC estimates the global LCD panel market will grow 33% this calendar year to $ 112 billion.
Continuously increasing prices for LCD panels will also contribute to revenue growth. Sharp held 10.4% of the small to medium panel market last year. Still, the purchase of the Japanese facility from Japan Display will significantly increase its production of compact displays for Apple devices. The shipments of LCD panels from this enterprise, already under the Sharp brand, resumed in February this year. The purchase was spent $ 390 million, allocated by Apple.
Sharp will increase shipments of LCD panels to Apple by 11% to 50 million units this year, Mizuho Securities predicts. LG Display and JDI are cutting shipments of traditional LCD panels, so Sharp is currently benefiting from its partnership with Apple. True, as Apple’s use of OLED panels expands, this advantage will fade away.