Sharp is expected to report an operating loss of about JPY35 billion (US$282 million) for the quarter April-June 2015, down from a profit of JPY4.6 billion a year earlier, according to a new report from Japan-based Nikkei.

The report said Sharp has struggled with falling LCD panel prices sold to smartphone vendors, particularly in China.

Despite the expected losses, Japan Display (JDI) aims to hold a 30-40% market share in the high-end smartphone panel market five years from now, company COO Shuji Aruga said at a recent press conference.

The company also aims to increase its non-smartphone business to US$4.05 billion by 2019, up three-fold from 2014. Reflective-type displays are expected to account for 20% of the business, OLED displays at around 40% and vehicle displays 40%.

Reflective-type displays are expected to be used in wearables, commercial applications, digital signage and specialized purposes for outdoor use, among others, the report added.

According to Digitimes Research, JDI is expected to surpass Sharp in revenues during fiscal 2015 due to the company's strong presence in the China market coupled with steady orders from Apple. JDI has been more successful in developing cooperation with vendors in China to supply panels used in high-end smartphones. Sharp has also been competing for orders but has seen weak results, one of the major reasons for the company incurring major losses in fiscal 2014.