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Major Display Makers Average -1.6% Net Margin Over Last 5-Years
Over the last 5-years, the 14 major display makers averaged a paltry 12.3% in gross margin, operating margins were 2.2% and net margins were a negative 1.6%. The free cash flow was also negative, raising the question, why are all these start-ups so excited about getting into the Micro LED Display business. The only good news is that in Q320, due largely to the increase in large LCD panel prices, the gross margin was 13% and the net margin was positive at 2%. Left out of the report was Sharp and JOLED, which would have had minimal effect on the averages due to low volume and low performance.
Figure 1: Display Industry Margins 2016-2020
Over the last 5-years, the 14 major display makers averaged a paltry 12.3% in gross margin, operating margins were 2.2% and net margins were a negative 1.6%. The free cash flow was also negative, raising the question, why are all these start-ups so excited about getting into the Micro LED Display business. The only good news is that in Q320, due largely to the increase in large LCD panel prices, the gross margin was 13% and the net margin was positive at 2%. Left out of the report was Sharp and JOLED, which would have had minimal effect on the averages due to low volume and low performance.
Figure 1: Display Industry Margins 2016-2020
Table 1: Display Companies Included
