. This supports our view that Sharp Corp.'s business structure and earnings will remain susceptible to external conditions following the consolidation of Sakai Display Products Corp., a wholly owned subsidiary making large LCDs. We believe a full recovery of its LCD business, which generates about 30% of consolidated revenues, is unlikely in the next six to 9 months. This is despite signs of large LCD panel prices picking up moderately. In addition, demand is rapidly shifting from LCDs to organic light emitting displays (OLEDs). A slight recovery in profits from home appliances has mitigated volatility in the LCD business. Demand for home appliances, TVs, PCs, and smartphones is unlikely to improve significantly as consumer demand remains weak after the COVID-19.
