By Kim Yoo-chul
Korea's LG Electronics said Wednesday that it may not achieve this year's flat-screen TV sales target, raising market worries over continued sluggish performances in one of LG’s critical cash-cows.
LG Electronics, which only trails its cross-town rival Samsung Electronics in the global flat-screen TV industry, is on alert to revive sagging momentum in the television business as it was the latecomer in premium LED-backlit and 3D televisions.
Officials say LG is experiencing tough challenges to keep the industry's No. 2 position amid Japanese rival Sony's increased presence by selling low-priced televisions.
"LG may not achieve its 5 million LED-backlit LCD sales target in the latter half," said Kang Shin-ik, the president of LG's home entertainment division, which handles the TV business.
LG earlier had said it was planning to sell 7 million LED-backlit LCD televisions for the full this year. During the first six months of this year, LG sold 1.1 million of such sets.
LED TVs are LCD sets that use LED as the main backlight, enhancing brightness and saving energy. Major television makers are rolling out more LED-backlit LCD models at affordable prices capitalizing on key markets for higher margins.
The LG executive also added it will miss its earlier 3D TV sales target for 2010 as the company has failed to initially boost the new televisions.
"3D TV sales will be lowered earlier than expected due to the lack of customized content, strong resistance in prices and other hurdles," according to Kang in a meeting with reporters at an industry forum.
LG's earlier 3D TV sales range was between 800,000 and 1 million. Separately, the television sales target including plasma TVs for LG this year was 29 million.
Kang, however, declined to comment whether LG has officially cut this year's TV sales target.
It seems quite uncertain whether LG's television chief to be will be given another term by the upcoming chief executive Koo Bon-joon in this year’s annual management reshuffle, which has been slated for December, though Kang helped LG's television business get ahead of Sony.
An LG spokesman declined to comment.
Amid the global television industry new drive for the so-called "all-in-one" and Internet-enabled smart televisions, LG's Kang said the company will release what he claims are "completely new" smart TVs sometime in the latter half of the year.
"LG has been under a phase for the development of advanced smart televisions. The upcoming ones will be different to those of other firms," according to Kang.
At the recently finished IFA trade fair in Germany, LG displayed its own smart TV platform ― NetCast 2.0 ― making it possible to realize customized content on a single screen.
"By experiencing some technical corrections, LG will make a debut of smart TV-only smart TVs," said the top executive.
Beset by Samsung Electronics, LG is planning to expand its partnership channels to over 120 by the end of this year.
It has already formed a content partnership with YouTube, Orange and MLB overseas, while LG had fronted with the domestic entertainment group CJ Group to use "CJ TV Portal" for LG's smart televisions.