LG Electronics said yesterday that its most recent quarterly profits were down 85 percent from the previous year, due mostly to a 29 percent dropoff in sales from the prior quarter in its digital display group that includes flat-panel TVs. The company does expect sales to pick up as more 40+ inch LCDs are introduced, although price declines will continue to put heavy pressure on margins.
If companies like LG can't make money selling HDTVs now, how can they expect the situation to improve as prices continue to fall? I suppose they're banking on their costs falling quicker than retail prices, but to me it's unclear whether that will really occur, even with all of the new plants in Korea, Japan and China coming online.
What kind of world do we live in if you can't make money selling a $2,000 TV???
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1 comment:
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