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LG Says Q1 Operating Profits May Decline Over 18%

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

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LG
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
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.

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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)

Next Story

LG Electronics Unveils 13 New OLED TVs at CES

Not only ideal for film buffs and gamers, LG OLED TVs are perfect for sports fans, too, made possible by the new I9 Gen 3 AI Processor - and sports-centric features

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LG
Logo of LG. Wikimedia Commons

LG Electronics (LG) has raised the bar again in 2020 with the launch of 13 new LG OLED models, led by three new art-inspired GX Gallery series 4K Ultra HD TVs, 88- and 77-inch class Real 8Kmodels and an all-new OLED screen size – 48-inch.

Unveiled at CES 2020, the new LG OLED TVs – and new 8K and 4K LG NanoCell LCD TVs – are designed to deliver stunning picture quality and innovative design with upgraded performance and artificial intelligence-enabled features.

At the heart of the latest 8K and 4K LG OLED and 8K LG NanoCell TVs are a number of advanced core technologies, most notably the new I (Alpha) 9 Gen 3 AI Processor. This advanced processor leverages upgraded processing power and artificial intelligence deep learning algorithms to improve picture quality and enable a host of specialised features for various types of content including movies, games and sports, taking the user experience to new heights.

LG’s 2020 premium TVs flaunt unique, elegant designs that integrate effortlessly with any home decor. The all-new minimalist Gallery Series takes design to a whole different level with an ultra-thin form factor – the 65-inch model is a mere 20 millimeters (0.79 inches) thin. Paired with an included specially-designed wall mount, these 55-, 65- and 77-inch class models hang completely flush on the wall.

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OLED TVs are becoming a popular trend these days. Pixabay

The 2020 LG OLED ZX Real 8K models, delivering four times more detail than 4K TV and 16 times more than HDTV, exceed the strict requirements established by the Consumer Technology Association’s (CTA) official industry definition for 8K Ultra HD TVs. The 88- and 77-inch LG OLED models are among the first to earn the new CTA 8K Ultra HD logo.

LG’s 2020 TVs are ideal for serious gamers, delivering the most seamless, immersive big-screen gaming experiences available anywhere. As the first TV manufacturer to offer NVIDIA G-SYNC Compatibility, LG is expanding this capability in 2020 to 12 OLED TVs to provide a flawless PC gaming experience without screen tearing or other distracting visual artifacts.

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In another industry first, 2020 LG OLED TVs feature the HDR Gaming Interest Group’s HGiG Mode so gamers can enjoy high quality visuals as game creators and developers intended when playing HDR games via consoles on their LG TVs. HGiG is a body made up of companies from the game and display industries that develops standards to improve the HDR gaming experience for consumers.

Not only ideal for film buffs and gamers, LG OLED TVs are perfect for sports fans, too, made possible by the new I9 Gen 3 AI Processor – and sports-centric features.

Sports Alert helps users to keep track of their favorite teams and schedules and notifying them as soon as a team scores. Users can select their favorite teams in various sports – soccer, football, baseball, etc – to receive automatic updates at the start of a match, whenever a team scores and when the game ends. (IANS)