LG Electronics surprised analysts when it declared that its Q4 operating profit fell 80% when compared to the same period a year ago. The estimated profit of 75.3 billion won ($67.03 million) was far lower than analyst estimates of 387 billion won. Because of this, revenue is projected to fall 7% to 15.8 trillion won. Analysts estimated revenue at 16.3 trillion won. LG is struggling to sell smartphones and its profit margins for high-end TV are being affected by increased competition. Emerging markets and China aren't purchasing as many electronics as before. "It's a surprise," said analyst Lee Jae-yun at Yuanta Securities. "Home appliance sales were worse in emerging markets and China, while its high-end TV business isn't making profit as much as before." Analysts also said earnings were likely squeezed by higher year-end bonuses and marketing expenses for new handsets.