Never miss a story

Get subscribed to our newsletter


×
LG logo. Wikimedia Commons

LG Electronics Inc. has said its first quarter operating profits are expected to drop 18.8 per cent from a year earlier, mainly due to its sluggish smartphone business.

In an earnings guidance, the South Korean electronics major said it expects to post 899.6 billion Won ($791.8 million) in operating profits in the January-March period — above the average market expectation of around 800 billion won.


Its sales are expected to be 14.9 trillion Won in the first three months of 2019, sliding 1.4 per cent from a year ago, the firm said.

The company did not provide detailed performances for each division, saying it will release its earnings report later in April, Yonhap news agency reported.

The operating profit in the preliminary earnings report was up more than 11 times from the previous quarter figure and the company’s second-highest quarterly record.

Market watchers say the strong demand for home appliances was expected to have improved its profitability, offsetting losses from the sluggish mobile business.

In the wake of the worst bout of fine dust in South Korea this year, LG Electronics posted brisk sales of products related to air quality, such as air purifiers, dryers and clothing-care home appliances.


LG unveiled V40 ThinQ with 5 cameras few months back. Flickr

Sales from its home appliance rental service have also been on the rise as more people opt for renting gadgets to save money on purchases, installations and maintenance.

“The release of new televisions and home appliances are expected to enhance LG Electronics’ profitability, but it may be hard for the mobile communication division to make a turnaround in the first quarter,” Park Sung-sun, an analyst at BNK Investment and Securities, said.

In March, LG released its new flagship smartphone — the G8 ThinQ — which drew a lukewarm market response compared with Samsung’s Galaxy S10. It plans to release the V50 ThinQ, its first 5G smartphone with a detachable second screen, in South Korea on April 19.

Also Read- Tech Giant Google Accidentally Leaks New ‘Pixel 3a’ Smartphone: Report

Analysts estimated LG posted over 200 billion Won in operating losses from its mobile business in the first quarter, extending losses from a year ago and marking the eighth consecutive quarterly deficit.

According to industry tracker Strategy Analytics, LG smartphones’ market share fell from 17.4 per cent in 2017 to 14.3 per cent in 2018 in South Korea. Its share in the North American market also fell from 16.9 per cent to 15.9 per cent over the cited period.

“It is important to create enough demand to cover the rise in marketing costs when the flagship smartphones go into full-scale sales in the second quarter,” Koh Ui-young, an analyst at HI Investment and Securities, said. (IANS)


Popular

VOA

In this file illustration photo taken on Aug. 12, 2021, the Facebook logo is shown on a smartphone in front of a computer screen in Los Angeles

Facebook must pay a $4.75 million fine and up to $9.5 million in back pay to eligible victims who say the company discriminated against U.S. workers in favor of foreign ones, the Justice Department announced Tuesday.

The discrimination took place from at least January 1, 2018, until at least September 18, 2019.

Keep Reading Show less
Photo by Engin Akyurt on Unsplash

Tomatoes are a staple in the Indian diet, be it a vegetarian or a non-vegetarian dish

Tomatoes are a staple in the Indian diet, be it a vegetarian or a non-vegetarian dish. It has to be a part of each meal in some form. As puree, paste, flavour, or diced into the dal. This tangy, sweet, and juicy ingredient was not always Indian. In fact, it did not even grow in India until the British sanctioned it. It is a product of colonization and has come a long way to become part of our everyday meals.

Originally, the tomato was considered poison. Its actual native is debatable. Some say it is European while others argue that is came from indigenous parts of Spain and Portugal. Either way, it is a plant species that is associated with the legendary Nightshade. It looks very similar to this poisonous plant that tomatoes were not even harvested for a long time, for fear of picking Nightshade instead. It was believed that Nightshade caused the blood to turn to acid and that tomatoes had the same property. Later research proved that the plant itself may be poisonous but the fruit is not.

Keep Reading Show less
wikimedia commons

Recently, Tom and Jerry was made into a live action film

Every child who grew up in the 90s and the early 00s has certainly grown up around Tom and Jerry, the adorable, infamous cat-chases-mouse cartoon. The idea of naughtiness and playing mischief had the standards that this particular series set for children and defined how much wreckage was funny enough.

The show's creators, William Hanna and Joseph Barbera initially named their characters Jasper and Jinx. They did not plan for the fame that Tom and Jerry brought them when they released a movie by the name of "Puss Gets the Boot". This movie featured a certain cat and mouse who were a notorious pair, named Jasper and Jinx. When the movie became a hit, the names of the characters were changed and the show shot to fame.

Keep reading... Show less