The display
maker, whose customers include Apple, reported an operating profit of KRW 701
billion in the April-June quarter, beating an average analyst forecast of KRW
599 billion from Refinitiv SmartEstimate. Revenue rose 31 percent on-year to
KRW 7 trillion.
Prices of
LG Display's mainstay 55-inch liquid crystal display (LCD) panels for TV sets
more than doubled in the April-June quarter from the same period a year
earlier, according to market data from TrendForce's WitsView.
Still,
panel prices are slated to fall in the latter half of the year, as Chinese
panel makers ramp up production on the back of a slight easing in the shortage
of semiconductor parts, especially display driver integrated circuits (DDI),
analysts said.
As well,
vaccinated people around the world are venturing outdoors and watching less TV,
prompting TV makers to take a conservative view on demand and lower panel
procurement levels, analysts said.
"We
are planning to operate our business on the assumption that IT panel prices
might be partially mitigated and decline," Chief Financial Officer Suh Dong-hee
told an earnings briefing, citing issues including competitors' panel
production capacity and the parts supply situation.
Market
demand for LCD TVs was likely to decline more quickly than for IT devices,
which would likely lead to weaker panel prices for LCD TVs, Suh said.
Apple on
Tuesday said a global chip shortage that has bit into its ability to sell Macs
and iPads will start to affect iPhone production and forecast slowing revenue
growth.
Analysts
said the global chip supply crunch has pushed up prices of consumer electronic
gadgets, including laptops, TVs and smartphones as manufacturers adjust prices
to reflect component cost increases in their pricing, however, prices were
unlikely to continue to rise as the chip shortage is expected to ease in the
second half of the year.
LG
Display's stock has risen more than a fifth so far this year, versus a 12.5
percent rise in the broader market. The stock was up 2.2 percent in late
morning trade.
© Reuters
0 comments:
Post a Comment