Samsung Electronics earned more than LG in TV and home appliances in 4 years

According to the Electronic Engineering System of the Financial Supervisory Service on the 1st, it was revealed that last year, Samsung Electronics achieved a total sales of 48.17 trillion won and an operating profit of 3.5 trillion won in the consumer electronics (CE) division that combines TV and household appliances.

This is a 7.6% increase in sales and 36.4% in operating profit compared to the previous year (sales of 44.76 trillion won and operating profit of 2.6 trillion won). The CE division’s operating profit last year was the highest ever.

Thanks to the demand for Corona 19 pent-ups and zip-cocks, it has consistently performed in the TV segment, which has a large portion of sales, and home appliances are also the result of promoting the popularity of the’Bespoke’ series.

LG Electronics also recorded sales of 22.29 trillion won and operating profit of 2.356.2 trillion won in household appliances (H&A) alone last year, the highest performance ever. LG Electronics’ home appliance operating profit is globally No. 1, higher than that of Samsung and Whirlpool in the US.

However, the combined operating profit of LG Electronics’ household appliances and TV (HE) divisions totaled 3.3 trillion won, behind Samsung Electronics by 200 billion won.

In terms of sales, Samsung Electronics has maintained the No. 1 position with a large gap compared to LG Electronics, but its operating profit has given LG Electronics the No. 1 position for three consecutive years since 2017.

Despite the fierce attack from China, TVs with QLEDs performed well in the global market for 15 consecutive years, but household appliances were sluggish.

On the other hand, LG Electronics has seen rapid growth in household appliances from 2017. With the release of new home appliances, such as clothes managers, drum washing machines, and dryers, that have increased the popularity of consumers, it has an advantage over Samsung Electronics and created the formula that’home appliances are LG’.

In the case of LG Electronics, TV sales were higher than those of household appliances until 2016, but sales of household appliances (18.55 trillion won) began to outperform TV (16,431.3 billion won) from 2017, and 2 trillion won in 2017. The sales gap between the two divisions, which used to be good, also widened to 9 trillion won last year.

Operating profit for both TVs and household appliances was similar from 2016 to 2018, but last year, operating profit for household appliances was 1.4 trillion won more than TV.

The reason that Samsung Electronics surpassed LG Electronics’ operating profits last year was largely due to its dominance in the TV market and the remarkable growth in the household appliances sector based on the Bespoke series, which was well received by young people such as newlyweds.

For Samsung Electronics, the proportion of TV sales in the consumer electronics (CE) segment reached 61% in 2016, but decreased to 58.5% in 2019 and 57.5% last year.

Considering that the overall sales of Samsung Electronics’ CE division increased for the last two years in a row, it can be seen that the proportion of sales of home appliances has increased.

Samsung Electronics’ CE division’s earnings for this year included the medical device division again, but the stock price explained that the level of impact on profits seems negligible.

In the TV market this year, the two companies are expected to clash in mini-LED TVs in addition to existing QLED and OLED TVs, and will continue to compete in the consumer electronics market with Steam Home Appliances (LG) and customized taste home appliances Bespoke (Samsung).

An official in the electronics industry said, “Thanks to the long-standing competition between Samsung Electronics and LG Electronics in the TV and household appliances sector, we were able to show off our technology and market share in the global market.” It’s worth seeing,” he said.

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2021/02/01 07:00 sent