LG Electronics relies on 'G4' and 'OLED TV'

“We trust the G4 and OLED TV.”

Last year LG Electronics had the best-ever year since 2009 by successfully responding to the smartphone G3 and UHD TV market. It also expects to perform better this year. LGE emphasized that it would continue to improve its profitability in 2015 with premium TVs and market-leading smartphones at the IR session held at the Twin Tower in Yeoeuido, Seoul on January 29. However, the first quarter is forecast to be somewhat sluggish because of the off-season and exchange rate effects.

The Mobile Communication (MC) Company in charge of smartphones performed rather well without any new product in the 4th quarter of last year. Thanks to the family models like the G3 and G3 Beat that led the revival of smartphones throughout 2014, LGE increased its operating profit more than four times that of 2013 (KRW70.6 billion) to KRW311.9 billion.

In 2015, the company will use the choice and focus strategy by market, and develop competitive models to reinforce its competitiveness. It will introduce new mid-to low-priced models as early as the end of the first quarter. After the second quarter, it is planning to release the G4, the follow-up model of the G3. The G4 will come with much upgraded specifications compared to the G3, e.g. a 16-mega pixel rear camera and QHD resolution, and is forecast to compete fiercely with the Galaxy S6. An LGE insider said, “We will continue to follow the ‘two-track strategy,’ i.e. sales growth and improved profitability.”

In the TV market, LGE will overcome the challenge of Chinese manufacturers with technology. It has great expectations for the next-generation OLED TV, whose market LG is creating, and the 4K UHD TV based on the quantum dot technology. It seems that the Web IS, its own smart TV OS, which is well received both at home and abroad, will contribute to increasing sales. The UHD TV market will greatly expand this year, which is an opportunity factor, but unlike its competitors, it has the burden of opening up the market with both the OLED and LCD TVs.

The Home Appliance and Air Company market may not have a great growth potential, but it is expected to perform better this year. At the end of last year, the Home Appliance (HA) Company and the Air-conditioning & Energy Solution (AE) Company were combined into the Home Appliance & Air Solution (H&A) Company. The new company is expected to create synergies. The increased demand for high-efficiency products due to the tougher energy efficiency regulations is an opportunity factor. An LGE insider emphasized, “This year we will reinforce our cost competitiveness by expanding our high-efficiency and regional products.”