South Korea’s LG Display said its revenue rose 31 percent on-year to 7 trillion won during the second quarter of 2021.
The display maker, whose customers include Apple, reported an operating profit of 701 billion won ($607 million) in the April-June quarter.
Prices of LG Display’s mainstay 55-inch liquid crystal display (LCD) panels for TV sets have more than doubled in the April-June quarter from the same period a year earlier, according to market data from TrendForce’s WitsView.
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.
“We are planning to operate our business on the assumption that IT panel prices might be partially mitigated and decline,” LG Display 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.