LG has estimated that its first-quarter operating profit rose 82 percent to its highest in nearly eight years.
The news surprised the cocaine nose jobs of Wall Street who had expected things to be better for the troubled manufacturer but not that good.
LG said its January-March operating profit was $812.62 million and the highest since the second quarter of 2009.
Revenue for the quarter likely rose 9.7 percent, the firm said.
Earlier in the day, Samsung estimated the January-March period will produce its best quarterly profit in more than three years, beating expectations and putting it on track for record annual earnings on the back of a memory chip super-cycle.
Though LG did not elaborate on its forecasts, analysts say LG’s mobile business likely turned an operating loss for the eighth straight quarter. Sales of its new G6 flagship smartphone began in March and will not provide meaningful contributions until the second quarter.
Still, some analysts said losses likely were smaller in January-March as LG’s new lower-tier products fared better and the company reduced marketing spending.
Telly-maker LG Display has reported a record fourth-quarter operating profit of $778.33 million due to a pickup in TV panel prices.
The profit was caused by the upward trend of panel prices and a favourable foreign exchange rate.
Chief Financial Officer Don Kim said that the upwards trend of panel prices is anticipated to continue thanks to the low inventory level in the industry and the trends towards large-size panels.
The price of television LCDs larger than 32 inches has been rising for 10 months, according to data provider WitsView last week.
Analysts said the rise was mainly due to supply-side factors such as rival Samsung’s shutdown of an LCD fabrication plant last year, causing a tight supply-demand environment.
The company said its October-December operating profit rose 1,392 percent from the same period previous year, beating what the cocaine nose jobs of Wall Street had predicted.
Revenue for the quarter rose 18 percent from a year earlier, LG said.
The last two telly makers to support the standard are giving up on 3D this year
LG and Sony have decided to kill off the standard this year. None of their TVs, including the high-end OLED TV models, will be able to show 3D movies and TV shows.
The 3D feature has been offered on select televisions since 2010, when the theatrical success of “Avatar” in 3D helped encourage renewed interest in the technology.
Despite enthusiasm at the box office and years of 3D TVs being available at affordable prices, the technology never really caught on at home.
There are plenty of 3D Blu-ray discs still being released, such as “Star Wars: The Force Awakens,” but if you want to watch them at home you’ll need a TV from 2016 or earlier — or a home theatre projector.
Sales of 3D home video gear have declined every year since 2012. According to data from the NPD Group, 3D TV represents just eight percent of total TV sales dollars for the full year of 2016, down from 16 percent in 2015 and 23 percent in 2012. Native 3D-capable Blu-ray players fell to just 11 percent of the market in 2016, compared to 25 percent in 2015 and 40 percent in 2012.
The big problem is that while people like 3D they never use it because of the arsing around with glasses. Higher quality pictures using 4K have made the picture good and most people are happy with what they see.
Going to the movies and seeing 3D is a different concept and people are happier to have that experience.
LG Electronics has predicted it will make its first quarterly operating loss in six years in October-December.
As you might expect the drop is because of continued mobile losses and but appliances sales as weak at that time of year too.
LG is the second-biggest telly maker behind Samsung and it thinks it will suffer a $29.36 million loss for the fourth quarter, its first since a bigger loss in the fourth quarter of 2010.
Most analysts were expecting LG to come up with a profit although some thought a loss was inevitable.
LG said revenue for the quarter likely rose 1.5 percent. The firm did not disclose further details on its earnings and will release full results including performance by individual businesses at the end of January.
The company in October said its fourth-quarter profit would decline from the previous three months due to weaker earnings in its appliances business, its top profit engine this year, as well as higher promotional expenses heading into the year-end holiday shopping season.
Higher liquid crystal display prices heading into the holiday season also likely compressed margins for the TV division and further undercut profit.
LG hopes convince the world that it needs speakers that float.
The Levitating Portable Speaker (or PJ9) is a wireless, 360-degree omnidirectional speaker that flies above its station. It has a built in sub-woofer which means that it should not sound too tinny. When its 10-hour battery is low, it automatically descends down to its station and charges wirelessly, without interrupting music playback.
It’s also weatherproof (up to IPX7 specifications), and can connect to two Bluetooth devices simultaneously.
So does this mean that the audiophile friend of mine who set his speakers in concrete to stop them moving and improve the sound quality was completely wrong? Probably not. There are lots of speakers out there which defy the rules of sound quality in the interests of being a gimmick. Their makers always say smaller speakers sound better thanks to modern technology and they never do.
Still it looks very pretty.
Maker of the incredible melting Note 7, Samsung, is planning to use batteries manufactured by LG for its next Galaxy S series flagship.
Samsung is said to be in talks with LG Chem for a possible partnership to supply batteries. At present, Samsung SDI, which is a sister company of Samsung, and Chinese battery maker ATL are its suppliers. Samsung SDI supplied 70% of the batteries used in the Note 7, while the rest of the batteries were from ATL.
According to a report by Korean Herald Samsung is looking at getting lots of battery suppliers.
When Samsung announced the first recall, it was speculated that Samsung could go in for LG batteries. But sources told the Korean Herald that the deal is yet to be finalised between Samsung and LG. Samsung’s phones already use cameras from LG.
Some top technology companies are mulling if it is wise to try selling in the UK after the nation voted to leave the EU.
For those who came in late, last week the UK public believed several right wing politicians that all their problems were not really caused by right wing politicans, but rather the country’s membership of the EU. They were also believed that the country’s economy did not realy depend on the fact that it was in the EU.
This week the country is waking up to the fact that the right wing politicians did not really expect to win and did not have a plan if they did. They are trying to sing a rousing chorus of “there will always be an England” even as they are being hauled up for barefaced lying.
Meanwhile the technology companies who moved to the UK or sell into the country because of its EU Linkes are thinking of doing a Brexit of their own.
Samsung and LG Electronics’ sales in the region in recent years have already been miserable, but Brexit is expected to add hurdles for the two companies.
Local companies do not operate production facilities in the UK. Samsung Electronics’ European production base for home appliances is located in Poland, and those for television products are in Slovakia and Hungary. LG Electronics’ main European facility is located in Poland.
With the UK now severed from the EU, industry watchers have raised concerns that Korean companies’ products made in Europe could be subject to tariffs when entering the UK market.
Samsung is also reported to considering relocating its European headquarters in London to a location in Europe.
LG Display and Samsung will supply organic light emitting diode (OLED) screens for the Fruity Cargo Cult Apple’s next iPhone 7.
Japan’s Nikkei newspaper reported last month that Apple plans to start using OLED screens for iPhones starting in 2018, but no one was sure who was going to make them. It has been rumoured that Apple would be moving to OLED for years so, sooner or later one of the rumours had to be right.
According to the Electronic Times, LG and Samsung Display are close to a final agreement with Apple for the screens and will invest $12.8 billion in capital expenditure to build up OLED production capacity over the next two to three years.
Apple will probably provide some cash to both firms to help with the investments, but there is still a big risk that Samsung and LG are taking. After all interest in smartphones is decreasing and Apple could reduce orders if the Iphone 7 does not sell very well.
Still, Samsung Display currently supplies OLED smartphone panels to parent Samsung Electronics and Chinese vendors, so if Apple does not sell as many iPhone 7s it probably has others to sell them too,
A market research company said that over 331 million smartphones shipped in the third quarter of this year.
Digitimes Research (DR) said that Samsung accounted for 25.6 percent of the systems, followed by Apple (14.5%), Huawei (7.4%), Lenovo (4.8%), LG (4.5%), Xiaomi (3.8%) followed by a number of other brands.
DR said that the top 15 vendors accounted for 81.4 percent of total shipments with nine Chinese companies in that league.
DR estimates that smartphone shipments in the current quarter will total 396.8 million handsets – meaning that total shipments this year will be 1.326 billion units – a rise of over 10 percent compared to 2014.
LG Display said it will invest more than $8.71 billion to build a large plant to make panels using organic light-emitting diode (OLED) panels.
It is not clear where it is getting the dosh from, LG has not exactly been rolling in it of late so it is pretty much betting the farm on the ultra-clear display technology.
The company said it has begun building the plant, called P10, in Paju, South Korea, to make panels across all product segments including large screens for TVs and flexible OLED panels for devices such as smartwatches and auto displays.
Production is expected to begin in the first half of 2018.
Japan’s Nikkei Asian Review claimed that LG Display was building a new plant in anticipation of Apple adopting OLED technology for its iPhone in 2018. A spokeswoman for LG Display declined to comment.
Even without the fruity cargo cult’s involvement, LG Electronics Inc and its affiliate LG Display are investing heavily on OLED for TVs, and LG Electronics recently slashed the prices of TV sets in the United States using OLED in a push to popularise the technology.