LG Electronics said Friday it predicted its first-quarter operating earnings at 1.5 trillion won ($1.14 billion), which will likely be the company’s second-highest profit for the January-March period, outpacing Samsung Electronics’ financial result for the first time in more than a decade.Details on each business sector’s estimated figures were not available in Friday’s earnings guidance, but market watchers expect that LG’s key business divisions for home appliances, TVs and vehicle components put up solid results in the January-March period.
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LG Electronics Ranks 1st in World Home Appliance Market Single Brands in 2022
Haier took first place in terms of sales in the global home appliance market in 2022. This is the result of making a series of M&A deals with GE based in the United States, Fisher & Paykel based in New Zealand and Candy, based in Italy. By brands rather than sales revenue, LG Electronics maintained its No. 1 position.
According to Haier’s business report on April 4, sales of Haier’s home appliance division, excluding electronic parts and TVs, were tallied at 227.94677 billion yuan (about 43.7658 trillion won or US$33.3193 billion) in 2022. During the same period, sales of LG Electronics’ H&A Division in charge of the home appliance business amounted to 29.8955 trillion won (US$22.7613 billion), falling behind Haier by 14 trillion won (US$11 billion). Whirlpool recorded 25.4834 trillion won (US$19.4021 billion). A year ago, in 2021, Haier also took the world’s No. 1 spot in household appliances. At the time, its sales were about 39.2187 trillion won (US$29.8680 billion), a difference of more than 12 trillion won from LG Electronics’ 27.1097 trillion won (US$20.6461 billion).
Among Korean companies, LG Electronics surpassed Whirlpool in the United States in terms of sales, becoming the global No. 1 home electronics company for the first time in 2020. It maintained its No. 1 position for two consecutive years until last year. However, this is the result of overlookingoverlooking Haier, which is relatively unknown in Korea. “It is difficult to directly compare Haier’s group sales, which are the consolidated sales of several brands such as GE, which Haier took over, and LG Electronics’ sales are sales posted by one single brand,” LG Electronics said with reference to this.
Haier rose to prominence on the world stage when it bought foreign home appliance companies. After buying Japan’s Sanyo, it even took over the home appliance division from GE in the United States in early 2016. As of the end of 2014, before GE was in talks with Haier over selling off its home appliance business unit from GE, the unit’s sales sat at 9 trillion won or about US$8.44 billion. Haier has grown tremendously since the acquisition of the unit from GE. Haier’s home appliance sales jumped 1.5 times from about 12 trillion won (US$9.1 billion) in 2015 just before the acquisition of the unit to 18 trillion won (US$14 billion) in 2016.
Haier’s purchases of overseas home appliance companies were made in order to break away from its low-priced brand image as a Chinese company as well as to increase its size, analysts say. Recently, Haier is focusing on the smart home business while emphasizing its Internet of Things-based premium home appliance strategy.
LG unveils vision for ThinQ smart home platform
LG Electronics said Monday it presented a blueprint for ThinQ, a platform brand that connects home appliances and consumer electronics with smart technology for higher efficiency, at the Connectivity Standards Alliance member meeting in Seoul.
Jung Ki-hyun, vice president of LG’s platform business center, attended the four-day event as a keynote speaker and shared the company’s vision for providing more consumer-friendly smart home services.
He outlined three core values of ThinQ: advancement, connectivity and openness.
“LG ThinQ will soon serve as a partner that enhances the lives of our consumers by creating a smart environment — whether that’s at work, home and on vacation — that is tailored to their lifestyles,” Jung said.
ThinQ users can enjoy heightened connectivity for LG home appliances by connecting ThinQ to the Internet of Things and other smart devices that enabled Matter, an Internet Protocol-based communications standard for smart home technologies.
In line with the global trend toward artificial intelligence-based service releases, LG looks to equip AI chatbot services and AI-based voice recognition technology to ThinQ.
It also hopes to propel ThinQ’s open innovation strategy by taking full advantage of the wide range of opportunities offered by AI. This includes providing support for virtual assistant software platforms such as Google Assistant and Amazon Alexa, which are gaining popularity across diverse consumer demographics.
“We are paving the way for the age of ambient computing. We will continue developing our AI technology and Internet of Things connectivity so our consumers can get the best smart home experience with ThinQ,” Jung said.
The CSA is an organization that drives collaboration in IoT by developing universal open standards that enable the connectivity and interaction of objects. It also specializes in the standardization of a protocol called Matter.
Alongside LG Electronics, this year’s event was attended by 134 members around the globe, including Apple, Amazon and Google.
Renting large home appliances becomes popular among young Koreans
South Korea’s home appliance rental market is expanding as younger generations, who prioritize experience over ownership, prefer to rent instead of buying.
Renting large appliances such as refrigerators, air conditioner and washing machines, which cost a lot to purchase, has become an affordable alternative for people who move frequently or cannot afford the upfront costs.
According to data from the country’s top three electronics rental businesses ? Coway Co., LG Electronics Inc. and SK Magic Co. – their cumulative number of rental accounts is estimated at around 11.81 million at the end of last year. The local rental market has been steadily growing each year, with 11.04 million accounts in 2020 and 11.46 million in 2021.
As the market grows, the range of appliances available for rent is also diversifying. Large home appliances, also known as white goods, are becoming more popular, with LG Electronics starting to offer rental services for air conditioners and washing machines last year in addition to refrigerators in 2020.
LG Electronics reported that its rental business revenue in the third quarter of last year reached 551.9 billion won, a 20 percent increase from 459.7 billion won during the same period in the previous year. Samsung Electronics Co. is also offering rental services for its washing machines, dryers, air conditioners, refrigerators and vacuum cleaners in collaboration with SK Magic. The total number of products rented by these companies reached 23,000 units last year.
The main driving force behind the expansion of the home appliance rental market is millennials and young working professionals who are familiar with the sharing culture. Among the new LG Electronics rental subscribers last year, the proportion of those in their 20s and 30s was as high as 30 percent. Including those in their 40s, customers aged 20 to 40 account for 65 percent of the total.
LG’s ‘uplifting’ home appliances tailored to different lifestyles
LG ThinQ UP home appliances can adapt to the changing lifestyles of its customers thanks to its sleek upgradable features. The range includes refrigerators, washers, dryers, oven ranges, and dishwashers with new functions that can adapt to users’ needs without them having to make any additional purchases.
Built around the customer-centric concept ‘Evolving with You’, the LG ThinQ UP appliances were first launched in South Korea and have since seen international success. The company will continuously develop easy-to-install software updates and hardware add-ons, delivering specialised options and new conveniences based on the usage patterns and suggestions of ThinQ UP appliance owners.
One of the custom features available to download this year is the Laundry Saver Mode which can be applied to dryer models with ThinQ UP. Extremely useful for those times when you can’t unload the dryer right away, Laundry Saver keeps the drum tumbling after the cycle has finished – and until the dryer door is opened – to help prevent wrinkles and odours. Another feature on offer is Improved Nighttime Brightness Control for refrigerators with ThinQ UP, which makes the fridges’ interior lighting softer at nighttime so as not to ‘blind’ users when they open the door
All new software features are optional, and can be easily downloaded from the LG ThinQ app.
“A new paradigm in the home appliance industry, LG ThinQ UP is an innovative, new solution that delivers unprecedented customer value and differentiated user experiences,” said Lyu Jae-cheol, president of LG Electronics Home Appliance & Air Solution Company. “We will continue to offer sophisticated lifestyle solutions that provide personalised performance, convenient features and customisable upgradability.”
LG Reinforces Strong Position in the European HVAC Market
LG Electronics (LG) is showcasing its latest heating, ventilation and air conditioning (HVAC) solutions at the International Trade Fair for Sanitation, Heating and Air (ISH) 2023, taking place in Frankfurt, Germany, from March 13-17. On display across the Residential Solution booth and the Commercial Solution booth, LG’s industry leading solutions for home and business deliver the strong performance and energy efficiency that European customers demand.
Due to tighter environmental regulations and the short supply of natural gas, the European HVAC market has seen growing interest in heat pump air conditioning systems that can reduce carbon emissions and dependence on fossil fuels. In 2019, the European Union announced its “European Green Deal” policy, which aims to achieve carbon neutrality by 2050. Last year, it also declared the “REPowerEU” plan to expand the use of renewable energy by 2030 and reduce energy consumption and reliance on fossil fuels.
Reflecting current market trends and a commitment to energy efficiency, LG’s HVAC products at ISH 2023 demonstrate the quality and value that have made the company one of the industry’s biggest players. Visitors to the Residential Solution booth can explore various solutions designed for private residences, including air source heat pumps (ASHP) employing low-Global Warming Potential (GWP) refrigerants, advanced Energy Recovery Ventilation (ERV) systems, LG’s reliable Water Heater as well as the Energy Storage System (ESS) and Building Energy Control (BECON) solution for smart energy management.
Making its global debut at ISH 2023 is the brand-new Therma V™ R290 Monobloc for residential applications. The impressive ASHP utilizes R290 refrigerant, which has a GWP of three – far lower than the GWP of refrigerants commonly used in heating solutions. The Therma V R290 Monobloc also delivers dependable indoor heating to keep homes comfortably warm throughout the coldest months of the year.
The LG Therma V series of high efficiency heat pump air conditioning systems are gaining wide popularity in the European market. Delivering a differentiated customer experience based on advanced technologies and convenient energy-saving features, LG’s outstanding ASHPs saw an increase in sales of more than 120 percent over the past year. In the majority of European countries where the company’s HVAC business operates, including France and Germany, sales of LG heat pumps more than doubled in 2022.
As ASHP solutions, LG Therma V products use outdoor air to generate energy for cooling and heating, leading to significant gains in operational efficiency. LG Therma V utilizes 75 percent thermal energy harnessed from the air and 25 percent electricity, helping households to reduce their dependence on fossil fuels.
Another energy efficient LG solution in the spotlight at ISH 2023, the Multi V™ i Variable Refrigerant Flow (VRF) system can be found in the company’s Commercial Solution booth. Equipped with LG’s highly evolved AI engine, the Multi V i improves energy savings by up to 24.7 percent* via AI Smart Care, which uses spatial and situational learning to adjust cooling and heating power. The solution also leverages LG’s AI Indoor Space Care to help maintain an even indoor temperature; automatically turning on the indoor units in a given area when occupants are detected, and turning them off again once the occupants have left.
“From the new Therma V R290 Monobloc to the Multi V i, our latest HVAC solutions demonstrate our commitment to promote a more energy efficient lifestyle,” said James Lee, head of the Air Solution Business Unit at LG Electronics Home Appliance & Air Solution Company. “LG will continue to develop smart, energy-saving solutions and endeavor to step closer to carbon neutrality.”
Visitors to LG’s ISH 2023 exhibition booth (E69, 12.1 Hall, Messe Frankfurt) can experience the company’s full portfolio of cutting-edge HVAC solutions.
LG’s Inverter Direct Drive Motor Reaches Milestone With 100 Million Units Produced
A Key Component of Premium LG Washing Machines for More Than Two Decades,
Company’s Innovative Motor Technology Continues to Evolve for Excellence
SEOUL, March 10, 2023 — LG Electronics (LG) announces that the production of its Inverter Direct Drive™ (DD™) motor has exceeded 100 million units. The company’s differentiated motor technology is a major factor in the strong, reliable performance and continuing global popularity of LG’s industry-leading laundry solutions.
From 1998 to the end of 2022, the company produced, on average, over 12,000 Inverter DD motors per day. LG’s Inverter DD motor connects directly to the washing drum, an innovation that helps make LG washing machines more durable and dramatically reduces noise and energy consumption during operation.
LG has refined the Inverter DD motor over four generations, continuously improving the technology and its performance capabilities to deliver greater customer value. The company holds over 240 Inverter DD motor related technology patents in Korea and internationally. In 2019, the company applied Artificial Intelligence (AI) to the Inverter DD motor to further enhance its efficiency and effectiveness. Used in LG’s premium washing machines and dryers, the AI DD motor leverages deep learning technology to detect the weight of each load and the types of fabrics being washed. It then selects the optimal combination of drum movements from the company’s proprietary 6 Motion technology – which enables six discrete drum movements – to care and clean for users’ laundry.
Last year, LG brought its advanced Inverter DD motor to its dryers for the first time. Like the company’s washers, LG dryers also offer 6 Motion (Tumble, Swing, Rolling, Stepping, Scrubbing and Filtration) technology to boost drying performance and minimize fabric damage. LG’s inverter motor technology – specifically, the AI DD – became the first home appliance technology to earn Deep Learning AI Verification from global safety science company UL (Underwriters Laboratories).
“The number of Inverter DD motors produced points to the excellence of the motor technology LG has developed for its premium laundry solutions,” said Kim Yang-sun, head of the Component Solution Business Unit at LG Electronics Home Appliance & Air Solution Company. “We will continue to create highly efficient core components that boost the performance and reliability of our products while also reducing carbon emissions during operation.
LG India new production line
After more than 25 years of providing people in India with innovative products, LG has become a household name in the country by building its reputation as the top producer of home appliances. Last year, the company was even named by TRA Research as the Most Trusted Brand in the refrigerator and washing machine categories as well as the air conditioner and microwave oven categories, which not only suggests LG India has retained trust and leadership, but also enhanced its portfolio in this vital market.
So, to perform its duties as an industry leader while reaffirming its commitment to the government’s ‘Make in India’ mission, LG has invested a total of approximately 24 million USD to open a new manufacturing line for its premium side-by-side refrigerators in Pune, India.Equipped with advanced technologies and machineries, the upgraded Pune campus can produce 200,000 side-by-side refrigerator units every year as well as a large number of double-door and single-door refrigerators.
LG Showcases Portfolio of Advanced Home Appliances With “Life on the UP” at KBIS 2023
LG Electronics (LG) is presenting its state-of-the-art kitchen and living appliance lineups at the 2023 Kitchen & Bath Industry Show (KBIS), taking place at the Las Vegas Convention Center in Las Vegas, Nevada, USA, from January 31 to February 2.
Under the theme of ‘Life on the UP,’ LG’s exhibit showcases the modern design and advanced technology of the company’s latest appliances while highlighting the personalized convenience they provide through the addition of ThinQ UP and ThinQ Care features – now available on LG’s premium built-in lineups for the very first time. Featuring eight unique zones, LG’s booth explores diverse consumer lifestyles and aesthetics with each zone representing a different, well-known American city, location or landmark, and each displaying a selection of new, cutting-edge LG appliances.
Visitors to KBIS 2023 can discover the latest premium kitchen solutions from luxury built-in brands, Signature Kitchen Suite and LG STUDIO, both of which offer the refined design and personalization options that today’s consumers want for their homes. The new Signature Kitchen Suite 48-inch built-in refrigerator comes in stainless steel or panel-ready option and boasts Signature Fit™ Integrated Design; enabling a seamless match with any interior décor and giving customers the choice of proud or flush installation.
Also on show at KBIS is LG’s new Signature Kitchen Suite 36-inch gas cooktop. The impressive appliance features five, powerful brass burners totaling 67,500 BTUs – including a 24,000-BTU* Ultra-High™ dual burner with a convertible wok grate – which is the most of any cooktop in the luxury kitchen category. Additionally, the new cooktop is available with an easy-to-clean porcelain-coated cooking surface, while the LG STUDIO kitchen package now offers customers an elegant, new handle color – rose gold – to choose from.
For hassle-free cleanup, the Signature Kitchen Suite’s PowerSteam® dishwasher can complete a full cycle in less than one hour thanks to LG’s QuadWash™ Pro and Dynamic Heat Dry™ technologies, the latter of which circulates hot air throughout the appliance’s interior. The sleek, stainless steel dishwasher, which has ‘hidden’ controls located on top of its door, uses TrueSteam® to help remove caked-on food and reduce water spots, while QuadWash Pro uses high-pressure jets of water to clean dishware from multiple angles.
LG is also exhibiting its personalized living solutions at this year’s show, with ThinQ UP appliances such as the latest washer and dryer pair, a new minimalism concept kitchen appliances lineup, and lastly, the new MoodUP™ by LG STUDIO – a fridge with color-changing door panels (23 colors available for the upper panel and 19 for the lower) that can be easily controlled via the LG ThinQ app. ThinQ UP, which enables users to continuously upgrade their appliances with additional features, will soon be coming to LG’s built-in appliances – including the Signature Kitchen Suite and LG STUDIO lineup – as will ThinQ Care features designed to help users protect and get the most out of their LG solutions.
What’s more, LG is presenting entertaining events at the show to allow visitors to experience its products and brand values first-hand. In the Las Vegas-themed zone of the company’s booth, Signature Kitchen Suite chefs, Nick Ritchie from Napa Valley and Austin Kang from Seoul, are giving cooking demonstrations using Signature Kitchen Suite appliances to prepare delectable treats for attendees. LG is also hosting an exclusive party in its booth’s New York-themed zone on the evening before KBIS 2023 opens. Along with music and a colorful LED lighting display provided by the customizable MoodUP™ by LG STUDIO, guests will be able to enjoy delicious desserts made using the ultra-convenient Scan to Cook feature on LG STUDIO cooking appliances.
“At KBIS 2023, we will introduce the exceptional, personalized experience offered by our ultra-premium built-in appliances and ThinQ UP,” said Lyu Jae-cheol, president of LG Electronics Home Appliance & Air Solution Company. “LG will continue to deliver smart, stylish kitchen and living solutions designed to enhance consumers’ homes and daily lives.”
Visitors to LG’s booth (West Hall #3045, Las Vegas Convention Center) at KBIS 2023 will have the opportunity to experience the full portfolio of LG kitchen and living appliances.
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Samsung Electronics and LG Electronics suffered a steep drop in sales of home appliances
Samsung Electronics and LG Electronics are working on special measures to cope with the steep drop in sales of home appliances.
Samsung Electronics has recently divided the Kitchen and Living Development Groups under the Development Team of the Home Electronics Division into five development groups — the Refrigerator, Cooking Equipment, Dishwasher, Clothing Care, and Vacuum Cleaner. The Software Development Group under the Development Team was also subdivided into five groups by product group.
In early 2022, Samsung Electronics sent six executives from the Video Display (VD) and Mobile Experience (MX) Division to the development team of the Home Appliances Division. It also established a next-generation home appliance research team at Samsung Research, a leading research and development organization.
Samsung Electronics has completely overhauled the Home Appliance Division because it recorded a loss of 318 billion won in the fourth quarter of 2022, analysts say.
LG Electronics, the No. 1 global consumer electronics company, is placing a big bet on the electric vehicle business. The company is expected to try to offset the sluggishness in the home appliance sector with sales growth in the electric vehicle business.
IBK Investment & Securities estimated that LG Electronics’ H&A Division’s operating profit plunged from 445.5 billion won in the first quarter of last year to 19.2 billion won in the fourth quarter of the same year. Stock market analysts forecast that Samsung Electronics and LG Electronics will enter a deficit tunnel in both TV and home appliance businesses in the first half of this year.
Unlike the Home Appliance Division, LG Electronics’ VS Division is estimated to have recorded operating profits from the second to fourth quarters of 2022 in a row, recording its first surplus on an annual basis. Its sales also reached 8 trillion won to 10 trillion won in 2022, which is estimated at 10 percent of LG Electronics’ total sales. Since the launch of the VS Business Division in 2013, the proportion of its sales in the automotive electronics domain has never exceeded 10 percent of its total sales. Industry insiders expect LG Electronics’ backlog of orders for electric vehicle business to reach more than 80 trillion won as of the end of 2022.
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