[by Kim Yoo-chul, Korea Times]
LG Electronics’ TV chief Kwon Hee-won sees his division gaining momentum thanks to the recent release of value-added TVs and cost-cutting efforts.
At the center of Kwon’s upbeat outlook is 3D-ready television that’s being developed using film-type patterned retarder (FPR) technology.
“No doubt, LG’s television business will improve in the first quarter from the previous one by profit,” Kwon said in a recent interview with The Korea Times.
“The sale of our FPR 3D televisions will rise sharply. LG plans its biggest-ever promotional campaigns for the products,” said the top executive.
Kwon said LG’s 3D televisions were made available to consumers in Germany and France last month, while top-tier U.S. electronics retailer Best Buy started selling the sets in America last week.
3D TVs are still nascent as consumers aren’t prepared to pay a premium for the sets amid a lack of customized content and falling prices for existing LCDs, LED-backlit LCDs and plasma models.
But the market is steadily growing because leading TV makers including LG’s cross-town rival Samsung and Sony of Japan are investing more for 3D televisions as part of their strategies to find next earnings sources.
LG’s FPR, which eliminates cross-talk (image overlap) and flickering, is its answer to shutter-glass 3D televisions developed by market leader Samsung.
LG’s TV division posted a 121.8 billion won operating loss during the fourth quarter of 2010, hit by sluggish TV demand, and higher marketing costs to lower inventories.
Kwon said LG’s 3D glasses are lighter, cheaper and cause less blurred vision.
“That’s why Japan’s Sony, a strong backer of Samsung’s shutter glasses technology, has taken an interest in FPR 3D for smaller sets. If the price of the glasses is high then consumer won’t buy them,” said Kwon.
LG has Philips of the Netherlands, Vizio of the United States and several leading Chinese TV makers in its FPR camp. But the name values are far behind those of Samsung’s partners which include Sony and Panasonic.
“Consumers will tell. That’s my current answer,” Kwon said.
Sony’s local representative Hong Ji-eun declined to comment whether or not the Tokyo-based outfit will adopt LG’s FPR technology for its upcoming 3D television models.
Kwon said the FPR sets were well received by executives at major Japanese retailers and top-level gaming companies.
LG has formed strategic alliances with Microsoft (MS) and Blizzard, developer of StarCraft and World of Warcraft and king of the multiplayer online role-playing game market, to develop more affordable software applications.
“In Japan, LG has bargaining power on whether to provide products with FPR technology to the biggest Japanese retailer,’’ said Kwon.
Japan is the toughest markets for foreign makers to bolster their presence due to higher consumer standard. But Kwon said LG’s televisions have seen steady improvement in awareness, there, and added LG will stick to its premium-oriented strategy in the neighboring country.
Despite a stronger Korean won against the greenback, the executive said the currency impact on its TV business will be limited, though LG is closely monitoring the situation following the massive earthquake and tsunami that struck northeast Japan on March 11.
“Challenges on global economic risks are still there. But LG doesn’t think the global economy will see a double-dip recession this year,’’ said Kwon.
For export-driven companies such as LG and Samsung, which makeover 75 percent of their sales outside the peninsula, a stronger Korean won sees their products lose price competitiveness overseas.
See the original post here: http://www.koreatimes.co.kr/www/news/tech/2011/04/129_84439.html
