LG Innotek's factory operation rate drops to 52% due to sluggish iPhone sales, etc. - South Korea

According to the Financial Supervisory Service's disclosure system, the factory operation rate of the optical solutions division of parts manufacturer LG Innotek fell 4.4 percentage points last year from 52.5% the previous year.
Actual production was 432.79 million units, down 1.1% from the previous year, while production capacity increased 7.3% to 825.09 million units due to capital investment.
The reason behind the decline in the factory operation rate of the Optical Solutions Division is that the production capacity, which is the base number, has increased significantly due to capital investment in the trillions of won.
In addition, last year, sales of the iPhone by Apple Inc. stagnated, which prevented the company from raising its operating rate.
The problem is that the large-scale capital investment will be reflected in the cost of goods sold due to the decline in operating rates.
It is expected to continue to rise to 85.7% in 2021, 87.9% in 2022, and 91% in 2023 as capital investment begins to pick up steam.
In the market, the operating rate of the company's Optical Solutions Division
One of the reasons is that iPhone shipments are expected to fall by 15% this year. Meanwhile, an industry source said, "LG Innotek is focusing on XR (cross reality)
"We are making investments with next-generation businesses in mind, such as the 2020 NHK Spring, so we need to keep an eye on the situation."