AAPL Stock: 117.81 ( -0.22 )

Printed from

LG cuts spending by 25% as iPad, smartphones lower TV demand

updated 10:10 am EDT, Mon August 29, 2011

LG cuts capital TV costs in switch to mobile

LG Display explained Monday that it would cut its capital spending by exactly a quarter. The company explained the move as necessary with smartphones and tablets cutting into demand for TVs. It planned to spend a comparatively modest $2.8 billion and had dropped plans for an extra factory, since existing plants would have to take over.

The move follows steps from Taiwan-area firms AU Optronics and Chimei Innolux and parallels an overall drop in demand for TVs. LCD TV demand grew just six percent in the spring and may actually decline in the fall. Explanations for the drops outside of mobile devices have varied, but they have usually revolved around a combination of a very saturated market, economic concerns reducing unnecessary expenses, and a lack of enthusiasm for 3D.

LG Display may pin much of the shift on Apple. It serves as one of the key manufacturers for screens on both the iPhone 4 and iPad 2, and it may be instrumental to the 2048x1536 iPad 3 display rumored coming in early 2012. LG does have both its parent company's mostly Android-led smartphones and its own tablet, the Optimus Pad, also contributing to some of the production swap.

LG as a whole has been struggling, with its smartphone group stemming losses but not reversing drops in TVs and computers. The firm was one of the few in the area not to overcommit itself to netbooks and lose to the iPad but has faced an upsurge from its Korean rival Samsung.

by MacNN Staff



  1. Mr. Strat

    Joined: Dec 1969


    Please go away

    I wish LG would just go Tango Uniform. They make crappy products...who needs 'em?

Login Here

Not a member of the MacNN forums? Register now for free.


Network Headlines

Follow us on Facebook


Most Popular


Recent Reviews

Ultimate Ears Megaboom Bluetooth Speaker

Ultimate Ears (now owned by Logitech) has found great success in the marketplace with its "Boom" series of Bluetooth speakers, a mod ...

Kinivo URBN Premium Bluetooth Headphones

We love music, and we're willing to bet that you do, too. If you're like us, you probably spend a good portion of your time wearing ...

Jamstik+ MIDI Controller

For a long time the MIDI world has been dominated by keyboard-inspired controllers. Times are changing however, and we are slowly star ...


Most Commented