During his keynote address at the LG summer line show tonight at Lincoln Center, LG Electronics USA president Teddy Hwang said that the recession strategy is working, noting the company's profits in home electronics and home appliances in recent quarters.
Hwang said that LG Electronics' global revenues went up 19 percent in the last quarter, to $3.5 billion. LG's home appliances and mobile device divisions also saw increases in revenue, growing 10 and 26 percent, respectively. The company's "recession strategy," Hwang explained, was to focus on high-end products that emphasize both aesthetic and functionality. It sounds very fluffy, but considering how smooth and shiny LG's BD300 and BD370 Blu-ray players are, and how many Internet content features are available on them, he might have a point. He said that LG invested 3.7 percent of its global revenue into R&D last year, and it plans to make a similar investment this year.
While Hwang was happy to note that LG is currently the second largest mobile phone manufacturer and the largest front-loading washing machine manufacturer in the U.S., he was not nearly as specific in describing the company's position in home theater equipment, only saying that it was "very strong."
— Will Greenwald
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