The operational profit of LG on TVs dropped considerably in the last quarter due to the lower prices that the manufacturer had to charge. The price reductions were necessary due to competition in the market for expensive TVs.
Whereas LG still had an operating profit of 9.2 percent for the whole of 2018, it had fallen to 2.4 percent at the end of 2019, according to the quarterly figures. In addition to the price reductions, LG also incurred more marketing costs, the manufacturer notes. The lower prices stood out; the price of certain models of OLED TVs regularly dropped below 1000 euros. That was unthinkable a few years ago. LG expects to sell more expensive TVs this year.
LG will release cheaper phones with 5g support this year. Last year, the company only released the high-end V50 ThinQ with 5g, but this year it will also need mid-range models with support for the new generation mobile network, such as appears from the report.
The group achieved a turnover of 16 trillion Korean won in the fourth quarter of 2019, equivalent to around 12.2 billion euros. That is 1.8 percent more than a year before. The operating income was converted to 770 million euros, which is 26 percent more than the year before.