What They Say
LG announced its preliminary results for Q1 2021 and said that revenue and operating profit increased 27.7% and 39.2%, respectively, from the same quarter the previous year and reached the highest levels in the company’s history. Revenue was $20.89 billion and profit was $1.34 billion.
Separately, Acer said that its revenues were up 46.5% to $2.51 billion and business highlights in the first quarter include YoY revenue growth for:
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Gaming line by 87.6%
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Chromebooks by 141.1%
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Commercial notebooks by 87.6%
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Monitors by 41.8%
What We Think
Over the years, I have often used the analogy of a Bavarian clock with a weather indicator to describe the panel and set industries. If the panel makers are happy, usually the set makers are miserable and vice versa. At the moment, both panel and set makers are really pretty happy, which is unusual. LG’s record profits must have really helped the difficult decision by the LG board to shut down its smartphone business. (BR)
