E Ink’s record first-half profits face headwinds from memory price surge and consumer demand slowdown

E Ink Holdings reports record-breaking first-half earnings amid rising memory costs, but warns of declining consumer demand and revised revenue growth target, signalling a shift in market dynamics for digital signage and e-reader markets.

E Ink Holdings, the world’s largest supplier of e-paper displays, said its first-half performance reached record levels even as it cut its full-year revenue growth target after a sharp rise in memory prices disrupted customer demand. The company reported revenue of TWD 18.85bn for the first six months, up 1% year on year, while operating profit climbed to TWD 6.36bn and net profit attributable to the parent rose 26% to TWD 6.52bn, according to the company’s investor briefing.

Chairman Li Zheng-Hao said the company had only recently told investors to expect annual revenue growth of 20% to 25%, but that consumer electronics customers began trimming orders about 3 weeks later. He said the change was driven by persistent increases in memory costs, which have forced some product launches to be delayed and pushed up prices for existing devices.

The pressure is hitting the consumer side of E Ink’s business, especially e-readers, where the company had expected a stronger shift from black-and-white to colour models this year. Taipei Times reported earlier this year that E Ink had already been expecting slower consumer demand while still counting on strong demand for electronic shelf labels, particularly in the US and Europe. The company now expects its consumer products business to fall by double digits this year, though it is more hopeful that some delayed launches will slip into 2026.

Not all of the company’s markets have weakened. Its internet of things segment, led by electronic shelf labels, remains on track to grow by about 20%, and demand in North America and Europe is still solid. E Ink also sees a growing opportunity in electronic paper advertising boards. While demand for larger 32-inch and above displays softened in the second quarter because of high prices, the 8-inch to 15-inch range has seen strong orders, with Li saying the company now has “million-unit level” demand, mainly for full-colour products.

That mix shift is expected to reshape the company’s quarterly pattern. Li said third-quarter revenue, measured in US dollars, would likely edge lower from the second quarter before the fourth quarter becomes the year’s strongest period, helped by electronic shelf labels. Earlier forecasts from the company had pointed to high-single-digit growth in revenue from digital signage next year, with the potential for that category to exceed 10% of sales.