LG says to use aggressive pricing for cheaper TVs

LG says to use aggressive pricing for cheaper TVs

Berlin: LG Electronics expects demand growth for new TV sets to slow during the second half, and the South Korean firms plans to be aggressive in a price war at the lower end of the market.

“In the lower end we will apply aggressive pricing," Simon Kang, the head of LG’s largest home appliances unit, told Reuters in an interview on the sidelines of the IFA consumer electronics show in Berlin.

Kang said the firm was planning no price cuts among its more expensive models, to protect its brand.

Kang said market growth would be somewhat softer in the second half of this year than LG has expected before due to global economic worries, but said he expected improvements from early next year.

“I think it is a temporary slowdown, which will be followed by a rebound next year," Kang said.

Kang said LG targets selling 25 million LCD TV sets this year, compared with 17 million last year, and to grow sales volume further to 35 million next year.

LG has forecast having a 15% global market share among LCD TVs this year, but Kang said the target could be too high.

“We think we can achieve 14-15%," he said.

Kang said demand for new 3D television sets has been somewhat slower than expected this year due to lack of three-dimensional content and high prices, but said both problems are set to ease next year.

He forecast the total market volume for 3D TV sets would top 10 million next year, compared with 3-4 million this year.