LG Electronics Surprises Analysts with a 80% Drop in Q4 Operating Profits

cageymaru

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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.
 

MrDeaf

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Did LG release anything interesting, as in, halo products, in 2018?

I know they had a few of interesting concepts, like the transparent OLED TV and folding screen for smartphones, but those still haven't entered production yet.
 

Brian_B

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Their mobile division is really hurting.

The appliance division (washer, fridges, etc) fall in a category called “durable goods” and don’t cycle nearly as fast as tech items do.

And Samsung is going after OLED aggressively with QLED.

Sounds about right.
 

tunatime

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The 120hz oleds should blow everything else out the water it. I hope it's not another we care about cheap crap and lcd wins again just because they are cheap as they did with pdp panles.
 
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OLED is still the best, QLED is lol, and their appliances are so far beyond Samsung's buyer beware specials it isn't even funny. Oh well, we can't have nice things I guess
 

gamerk2

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Their mobile division is really hurting.

The appliance division (washer, fridges, etc) fall in a category called “durable goods” and don’t cycle nearly as fast as tech items do.

And Samsung is going after OLED aggressively with QLED.

Sounds about right.
Except Samsung is also making less profit.

Honestly, I'm seeing all the warning signs for a global recession around late-2019/early-2020. Pretty much EVERYONE is selling less stuff.
 

wizzi01

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OLED is still the best, QLED is lol, and their appliances are so far beyond Samsung's buyer beware specials it isn't even funny. Oh well, we can't have nice things I guess
Oled will go the way of plasma soon.
 

MrDeaf

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Except Samsung is also making less profit.

Honestly, I'm seeing all the warning signs for a global recession around late-2019/early-2020. Pretty much EVERYONE is selling less stuff.
In fact, it's not just Samsung.
Even Apple wasn't selling a lot of iPhones in 2018.

2018 was an incremental improvement over 2017 in terms of smartphone technology.
Slighter more pixels, slightly better image quality, slightly better camera(s), removal of headphone jack, higher price, but nothing groundbreaking in terms of features offered.
 

JargonGR

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And higher prices on all high-end products across the board as if suddenly the world of tech is full or people with more money than brains....No Gentlemen this is not the fashion industry to serve BS like you do....

Shove it now...............
 

Kdawg

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where did all the people's money go?

cuz it's surely not sitting in their bank accounts

most people are not bargain hunters. they just spend spend spend
 

sirmonkey1985

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Did LG release anything interesting, as in, halo products, in 2018?

I know they had a few of interesting concepts, like the transparent OLED TV and folding screen for smartphones, but those still haven't entered production yet.
there were a lot of tech demo stuff over the last year but most of that stuff isn't even slated to be released until 2020 or later.. 2018 ended up being a year of incremental updates across all tech companies, nothing ground breaking was released. the manufactures did it to themselves and consumers caught onto it.
 

viivo

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I can't speak for others, but when two LG displays I've owned - a monitor and television - developed the same vertical lines on the left side of the panel combined with the hellish customer support experience, I decided never to buy another LG branded product.

I like my LG microwave, though.
 

Dodge245

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Personnnally im also seeing a recession of sorts happening sometime this year, lg/apple/Samsung are all sales down, in the UK there's a large drop in high Street shopping, with even our cheap shops seeing a downturn(Primark/pound stretcher etc)..

For us in the UK we also have Brexit looming with a predicted 35% drop in house prices to come with it. People are doubling down and restricting there spending
 

gamerk2

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In fact, it's not just Samsung.
Even Apple wasn't selling a lot of iPhones in 2018.

2018 was an incremental improvement over 2017 in terms of smartphone technology.
Slighter more pixels, slightly better image quality, slightly better camera(s), removal of headphone jack, higher price, but nothing groundbreaking in terms of features offered.
Which isn't shocking? Mobile OS's are basically mature, and mobile CPUs/GPUs aren't advancing as fast. So manufactures are basically adding features people don't really want (NOW WITH NINE CAMERAS!) to justify higher prices. And more and more, people are passing.

Case in point: I still have a (barely holding together) Galaxy S6.
 

gunbust3r

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Case in point: I still have a (barely holding together) Galaxy S6.
S6 Edge + here. battery is getting super weak. That will be my only reason to upgrade eventually and it's sure not going to be a $1000 purchase.

It doesn't take a rocket surgeon to figure out no one wants to drop $1000 on a phone, fridge, or TV if the current one still works.
 

vegeta535

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Did LG release anything interesting, as in, halo products, in 2018?

I know they had a few of interesting concepts, like the transparent OLED TV and folding screen for smartphones, but those still haven't entered production yet.
Outside the OLED tv they really are middle of the road when it comes to twxj offerings. Their normal TVs and monitors are typically piss poor. Low end TVs are where the money is. Average person can't justify paying $2k+ for a tv. Size and price is primarily concerns to the average person.
 

Nytegard

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What, everybody will buy one because the black levels are excellent then they will be banned from sale for consuming too much power?

What a strange post.
People care about price first, not quality. Plasmas at the time blew away LCDs in terms of image quality, but few people bought them due to the higher price. The Pioneer Kuro was practically the best image quality you could get on a television at the time, and they stopped making it, because who wanted to buy a $5000 TV in 2008 when you could buy a $500 TV?

OLEDs are nice (I have one), but unless they figure out a way to drop the entry price by roughly 80%, in a few years, we're going to be back forced to live with terrible image quality LCDs being the only option.
 
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I can't speak for others, but when two LG displays I've owned - a monitor and television - developed the same vertical lines on the left side of the panel combined with the hellish customer support experience, I decided never to buy another LG branded product.

I like my LG microwave, though.
My new LG OLED TV developed a white pixel that was always on. Covered by warranty but it took two tech visits to the house on their dime which isn't cheap. Swapped the panel instead of the TV so there's time in that as well. It's hard to imagine that my purchase would still be considered a profit to them.
 

zkostik

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Their mobile division is really hurting.

The appliance division (washer, fridges, etc) fall in a category called “durable goods” and don’t cycle nearly as fast as tech items do.

And Samsung is going after OLED aggressively with QLED.

Sounds about right.
Yeah, I was looking at a giant Sammy QLED around xmas time and it was surprisingly impressive, in fact, I may go as far as saying it looked better than Sony and LG OLED. I'm rather surprised but recent crop of QLED is very good in terms of color, brightness and of all contrast. Black levels were insanely deep for it not being OLED or plasma. Price however was also excessively high and well beyond what a high end LCD costs these days. However given the fact there's no burn in like with OLED (and yes, this is still true as I've seen it myself) and HDR that meets the spec (OLED doesn't get bright enough). So yeah, color me impressed but I don't think I'll ever purchase anything Samsung again after their super shitty non existent support. They just throw you under the bus after you purchase something, no matter high end or low end device. I will likely wait for LG to have something similar to QLED that's not OLED.
 

Nytegard

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As for burn in, rtings.com ran a year long test for current OLED televisions. Out of 6 different TVs, testing different stuff (games, movies, news networks, sports, etc.), only one television ran into any significant burn in issues. Bottom line: Don't watch CNN.

 

Spidey329

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My new LG OLED TV developed a white pixel that was always on. Covered by warranty but it took two tech visits to the house on their dime which isn't cheap. Swapped the panel instead of the TV so there's time in that as well. It's hard to imagine that my purchase would still be considered a profit to them.
They swapped the panel? You'd think it would have been cheaper to swap out the entire unit and send yours back for refurbished/repair stock.
 

ol1bit

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I'm still rocking my Panasonic VIERA TC-P50GT25 50-inch 1080p 3D Plasma HDTV, Black (2010 Model).

Looks as good as new, with 3D! Never have had a TV so good. It just won't die, black is black, vibrant color is vibrant color. Burn-in is non-
existent.

And it's a good space heater in the winter.

It just won't die.

 

YeuEmMaiMai

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2008,9 LG 32" TVs are still working great, I had to fix the power supply in the 2008 model back in 2013.

Personally I am all tapped out, just purchased a car, house, Samsung 65" TV, I phone for wife, Samsung S8 for me, snow thrower, power washer, bike, Kinetico, etc. over the last 2.5 years

done spending for a while.
 

Dr. Righteous

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LG is into more businesses than you may think.
If you got to a BurgerKing you might notice a large LCD menu display in the drive up. All LG; and they bring this tech to a lot of fast food restaurants.
 
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They swapped the panel? You'd think it would have been cheaper to swap out the entire unit and send yours back for refurbished/repair stock.
That was my exact thought (the tech's as well.) Apparently all 8 spares were accounted for so they had to go for part replacement. Guess it's still bleeding-edge and not leading-edge.
 
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