LG, Samsung Post Lower Revenues, Earnings on Weakness in Smartphones, TVs
Following a weak Q2 in which revenue sank from 52 trillion won ($44.3 billion) in 2014 to 48.5 ($40.8 billion) trillion won -- and earnings fell from 6.3 trillion won ($5.4 billion) to 5.7 trillion won ($4.9 billion) -- Samsung…
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expects a price drop on the Galaxy S6 smartphone, the introduction of new models across the board and a boost in TV shipments to produce solid earnings in the second half, it said on an earnings webcast. Samsung said it plans to spark “stagnant premium TV demand” by expanding its premium lineup of Super Ultra HD and standard Ultra HD models, as well as bringing curved TV to a broader market. The company has resolved shortages with the S6 Edge smartphone and plans to “adjust prices” of the S6 and S6 edge according to market circumstances. The company also will launch a larger display smartphone model, it said. Samsung shipped roughly 10 million LCD TVs in Q3 and expects a “high-single-digit increase” in Q3. Meanwhile, LG reported Wednesday that net income plummeted from 412 billion ($351 million) won in Q2 2014 to 226 billion won ($193 million) while sales tumbled from 15.1 trillion won ($12.9 billion) to 13.9 trillion won ($11.8 billion) in the 2015 quarter. LG attributed the 18 percent sales drop to a “weak global TV market” in markets including the Commonwealth of Independent States, Latin America and Europe. LG expects “intensifying competition” in the TV market to continue “for a while.” The company said it plans to boost profitability with a stronger mix and by being more competitive in the premium segment. Smartphone sales declined in the South Korea domestic market on weaker demand, said LG. Smartphone sales in North America improved by 36 percent in the mass-market segment, it said.