updated 09:45 am EDT, Thu August 18, 2011
Follows Sony and others in lowering sales forecast
LG has cut its 2011 sales target for TVs by 20 percent, from 40 million to 32 million units. The South Korean electronics giant follows rival Sony, Samsung, and Panasonic in lowering its expectations for the year. The weaker sales are primarily the result of the struggling economies in the US and Europe.
"TV sales are seen sharply below our original target," an unnamed LG official said to Reuters, "as the euro zone fiscal crisis is likely to continue and a US consumption recovery also remains uncertain."
Manufacturers have been scrambling to stem their losses or bolster weak profits in the wake of the softening TV sales. In April, Philips sold off a 70 percent stake in its television operations to Hong Kong display manufacturer TPV. Earlier this month, Sony revealed that it expected to post a significant operating loss for its television segment this quarter, and dropped its annual forecast from 27 million TVs to 22 million units. The company is looking at ways to restructure its TV operations.
More recently, it was reported that Hitachi would stop making TVs. It would stay in the market, but only with rebranded products from other vendors.
LG has not officially commented on its reduced forecast.