LG Electronics Had a Bad 4th Quarter

LG Electronics has reported a depressing 4^th quarter loss. The company, rated 3^rd in handsets and 2^nd in TVs, experienced losses in both sectors. According to “Worst Could Be Over For LG Elec After Record Q4 Loss” by Reuters, the South Korean company reported 262 billion won (KRW) loss in handsets, 122 billion won operating loss within TVs, and overall 246 billion won loss in operations for the quarter.

The loss in handsets is because LG waited long before introducing their smartphone to the market. As the smartphone industry has grown rapidly, companies cannot afford late entries. According to the article, analysts predict the company will still play catch up in the new year. The loss in TVs is due to an overall drop in consumer demand. Prices have dropped for almost all HD TVs and mixed with the bad economy, consumers have either already purchased their HD TVs at low prices or are waiting patiently as this is a buyer’s market.  

The good news is that the new line of LG smartphones has gotten positive ratings. As the title of the article might suggest, these 4^th quarter may not repeat as their Optimus phones warm up in the market. But there is competition in the smartphone industry. LG will place their phones in the market but may not find them amongst the top brands unless their phones present impressive new technology.