South Korean company LG Display Co Ltd, which is a key supplier of Apple, cut its investment plans by $2,7 billion by 2020, Reuters informs. Among reasons are concerns over global market for smartphones.

Earlier another Apple’s supplier, Taiwan Semiconductor Manufacturing Co Ltd (TSMC), informed about revenue and investments forecast reduction as well.

LG shares fell 7% compared with wider market drop of 0,3%. Company also announced possible production cuts in South Korea and China in response to trade dispute between Washington and Beijing. However, LG points out that it will not influence transfer from liquid crystal displays (LCD) to new generation organic light emitting diodes displays (OLED). Investments into OLED technologies will stay at the same level.

Traditional LCD business of the company that accounts for 90% of all sales suffers from price decline and competition from Chinese producers.

Price for 50-inch LCD panel dropped by 38% in May compared with the same month last year.

Company’s revenue in the second quarter fell 15% compared with the last year.