LG eyes 35 million in TV sales
By Kim Yoo-chul
BERLIN ― LG Electronics is optimistic about seeing double-digit growth in international television markets next year as it plans to release more premium models capitalizing on 3D.
An LG executive said Saturday that economic uncertainties and a lack of confidence will pose big challenges but the world’s second-biggest TV maker sees demand in 3D televisions to soon grow across the world.
``We are not fully positive that the global economy will see a drastic upturn next year. But the situation is going to get better,’’ Kwon Hee-won, head of LG’s TV division, told reporters in a meeting on the sidelines of the IFA tech fair in Berlin.
``We project that the global TV demand will rise 7 percent next year and we aim to see 15 percent in annual growth.’’
He did not mention specific figures but considering LG’s sales guidance of around 30 million TVs for this year, the target for the Seoul-based firm seems to sit at somewhere in the vicinity of 35 million for 2012.
LG cut this year’s goal to 30.5 million from the previous 40 million citing worsening economic uncertainties making people reluctant to snap up big-ticket items such as 3D TVs.
``It’s true that LG will miss the 40-million sales target this year,’’ Kwon told reporters, adding that the revised down target was mostly due to global economic uncertainty.
Other global giants such as Sony and Panasonic similarly keep tabs on the financial unrest in the United States and Europe, the conventional top markets for the Japanese players.
Betting on 3D
LG plans to become the world’s top 3D TV producer by the end of next year forecasting that more people will want to experience 3D-embedded appliances.
``We are expecting explosive 3D TV demand in 2012 thanks to technological development and the introduction of richer content,’’ said Kwon, adding his company will jack up the proportion of 3D TVs to 70 percent out of its total product lineup.
LG competes with Samsung Electronics for leadership in the global 3D television market. LG displayed 3D applications in this year’s IFA trade show in line with its strategy to entirely focus on 3D products.
In 3Ds, Samsung grabbed an early lead by joining hands with Sony and Panasonic for battery-powered technologies. The ``Samsung alliance’’ was challenged after LG developed FPR, which the firm claims is by far more affordable.
``Currently, the penetration of 3D televisions is somewhere between 7 percent and 10 percent of the overall flat-screen TV demand.
But the rate is rapidly going up and LG is looking to rank fifth in the global 3D TV market,’’ said the executive.
``We are targeting selling 7 million 3D televisions next year,’’ he added.
Asked about the commercial viability of glasses-free 3D TVs, Kwon said three or four more years will be needed before they fully hit the mass market because of costs.
Meanwhile, the executive, who is friendly with Apple’s new CEO Tim Cook, was uncertain regarding Apple’s entry into the TV market. If Apple does, Kwon forecasts the entire TV industry will face major restructuring.
``That’s a decision for Tim Cook. Apple has distinguished advantages in products, designs, contents and its cloud-based operating system. If Apple wants a share of the TV business as well, I think it will be a big blow to all TV makers,’’ said Kwon.