South Korea’s LG Display reported better-than-expected profit for the second quarter on Wednesday, as the pandemic caused demand for TVs and laptops to push up prices, pushing its stock price up 4.2% in early trading.

The display manufacturer’s customers include Apple. Its operating profit for the April-June quarter was 701 billion won (approximately Rs 4,517 crore), which the average forecast of 599 billion won (approximately 3,861) by Refinitiv SmartEstimate analysts. Rs. crore). Revenue increased by 31% year-on-year to 7 trillion won (approximately Rs. 45,124 crore).

According to TrendForce’s WitsView market data, the price of 55-inch liquid crystal display (LCD) panels, which LG Display is mainly used for televisions, more than doubled in the April-June quarter compared with the same period last year.

Nevertheless, analysts said that as Chinese makers have increased production in the context of a slight alleviation of the of semiconductor parts, especially display driver integrated circuits (DDI), panel prices are expected to fall in the second half of this year.

Analysts said that similarly, people vaccinated all over the world are taking risks outdoors and reducing TV watching, prompting TV manufacturers to be conservative on demand and the of procurement.

Chief Financial Officer Suh Dong-hee said at the financial report: “We plan to operate our business under the that the price of IT panels may be partially eased and reduced.” The issues mentioned include competitors’ production capacity and parts supply. .

Suh said that the market demand for LCD TVs may decline faster than the market demand for IT equipment, which may cause the price of LCD TV panels to weaken.

See also  The 35 best endurance laptops of 2020

Apple said on Tuesday that the global chip has affected its ability to sell Macs and iPads, which will begin to affect iPhone production and expects revenue growth to slow.

Analysts said that tight global chip supply has pushed up the prices of consumer electronics products, including laptops, TVs and smartphones, because manufacturers adjusted prices to reflect the rising component costs in their pricing, but due to expected chip shortages, prices It is unlikely that the rise will continue to ease in the second half of the year.

So far this year, LG Display’s stock price has risen by more than one-fifth, while the broader market has risen by 12.5%. The stock rose 2.2% in early trading.

© Thomson Reuters 2021

Why did LG give up the smartphone business? We discussed this issue on the gadget 360 podcast Orbital. Later (from 22:00), we discussed the new cooperative RPG shooter Outriders. Orbital can be used on Apple Podcasts, Google Podcasts, Spotify, and wherever you get podcasts.