Samsung Display to announce a considerable operating loss for the first quarter of 2020

As the current coronavirus situation unfolds, tech companies are starting to adjust their market expectations, taking into consideration the decreasing demand and the effect of the pandemic on the world economy. Now, SamMobile reports that the leader in smartphone display making, Samsung Display, has suffered a big hit in the first quarter of the year.

Samsung Display is responsible not only for manufacturing display panels for smartphones, but also for PC monitors, smartwatches, laptops and TVs. Reportedly, the company’s operating loss (when a company’s expenses exceed its profits) for the first quarter of the year amounted to around $378 million. For the same time frame, Samsung Display’s revenue amounted to around $5 billion.

Unfortunately, the loss is being caused by the coronavirus pandemic and the consequential fall in demand for smartphones and TVs. Additionally, analysts state that the closures of some of the company’s factories have also increased costs. What’s more, recently, Samsung Display announced its going to permanently close its LCD manufacturing lines, so that could have been a contributing factor to the company’s losses as well.

The company stated that it will stop LCD panel production by the end of 2020 and will focus its factories on developing and researching the technology of quantum dot screens.

Samsung’s other business, including its smartphone vendor division, has also been affected by the pandemic, despite the new smartphone models that the company announced a couple of months ago. Unfortunately, it’s not only Samsung that has suffered from the coronavirus situation - It’s likely that other big tech companies are going to announce losses over the next few months as well.