Risk of declining display selling prices
First written in FY2017. 5 of 7 entries say "Worsened", first in FY2018-Q3. Latest entry: FY2024.
Japan Display moved to the "Worse" side of this theme in 2017, 6 years before the typical company in this theme (2023).
1 other company's latest entry also says "Worsened".
- FY2024WorsenedAnnual report
「Due to the decline in revenue, the increase in research and development expenses, and delays in passing through higher energy, materials and processing costs, among other factors, the operating loss was ¥34,145 million.」
The delay in passing through increases in energy, materials and processing costs into prices was reflected in the full-year results as a factor behind the operating loss. - FY2023WorsenedAnnual report
「In addition to lower revenue, delays in passing through the higher costs of materials, energy and transportation to selling prices resulted in」
Delays in passing through higher materials, energy and transportation costs into selling prices led to an operating loss of ¥44,386 million. - FY2019WorsenedAnnual report
「During the consolidated fiscal year, we began full-scale shipments of the narrow-bezel FULL ACTIVE™ LCD display and saw a recovery in revenue from the second half, although shipment volumes did not reach the level initially anticipated.」
The company stated that FULL ACTIVE shipments were below the initial assumption amid intensifying competition and wider customer adoption of OLED, with continued pressure on selling prices and volumes. - FY2018WorsenedAnnual report
「Against a backdrop of expanding production capacity at overseas manufacturers and broader adoption of OLEDs, downward pressure on prices for smartphone displays intensified.」
It was stated that downward price pressure had actually intensified during the year as an industry trend. - FY2018-Q3WorsenedAnnual report
「During the nine-month period ended the third quarter, competition among display manufacturers intensified in the small- and medium-sized display industry, against a backdrop of expanded production capacity at overseas display manufacturers and increased market penetration of smartphones using OLED displays. This strengthened downward pressure on product prices in the smartphone display segment.」
The company disclosed that downward pressure on product prices had intensified amid heightened competition, and that the impact of the risk of falling prices had continued and expanded. - FY2018-Q2MaterialisedAnnual report
「Revenue for the China region declined from the same cumulative quarter of the previous year as manufacturers assessed changes to smartphone product designs, major customers adopted OLED in the high-end product segment, and competitors pursued aggressive pricing」
Aggressive pricing by competitors was identified as a factor behind the decline in sales to China, and the impact of pricing competition risk emerged in actual results. - FY2017First statedAnnual report
「If prices for the Group's products decline by more than the Group's cost reductions due to industry-wide overproduction of displays, declining demand for high-performance displays and the entry of low-cost manufacturers from China, Taiwan and elsewhere into the high-performance display market」
The Company disclosed the risk that selling prices could decline by more than cost reductions as a result of overcapacity, the entry of low-priced manufacturers and intensifying competition.