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or less profit

lotsofpulp 5y ago
TVs are already a low single digit profit margin business. https://www.macrotrends.net/stocks/charts/VZIO/vizio-holding/profit-margins https://www.macrotrends.net/stocks/charts/VZIO/vizio-holding...
- scq 5y ago
  That depends on the market positioning. High end LG and Samsung TVs have a healthy margin. In the first half of 2018, LG Electronics' operating profit margin on their TV segment was 12.4% due to strong OLED sales[0]. 0: http://www.businesskorea.co.kr/news/articleView.html?idxno=24794 http://www.businesskorea.co.kr/news/articleView.html?idxno=2...
  - tyrfing 5y ago
    3.3% for LG last quarter, that 2018 number is better than anything they've seen in the last 2 years. Samsung is losing money manufacturing panels, but their reports are a mess. For comparison, Apple is at 31%, Walmart is at 4.5%.
    - stjohnswarts 5y ago
      Wow, that's really surprising. I figured people were doing more TV and streaming during the boredom of the covidapocalypse
      - lotsofpulp 5y ago
        Profit margin is not necessarily a function of how much utility your product provides.
willcipriano 5y ago
Less profit per unit, you may sell more units than others and make more overall profit.
tnel77 5y ago
I think that’s illegal.
- judge2020 5y ago
  Not sure why this is downvoted. publicly traded companies are legally required to go for maximum profit for their shareholders. Without some Announcement like “we’re going to be making privacy friendly TVs, but customers will be paying more to make up for the lost ad revenue”, it would be pretty bad mismanagement for a company to not show ads somewhere in their consumer TVs when every one of their competitors is doing just that.
  - colejohnson66 5y ago
    It’s downvoted because it’s wrong; It’s a myth. There is no “legal fiduciary duty” to maximize profits. There is a fiduciary duty to the shareholders, but only in the sense of not wanting to be voted off the board and possibly sued if you mislead them. If the whole board agrees on your plan to bank the company on a possible suicide move, you’re fine.
  - mikeyouse 5y ago
    No they really aren’t, this is a common but silly misconception. Managers have a fiduciary duty to their shareholders but there’s a huge amount of latitude in what that means with the only real bright line rules being things like “don’t improperly enrich yourself with company assets”. If managers want to sell tvs without ads, they absolutely can. If the board (which represents the shareholders) disagrees with that decision, they can fire the managers, but there’s no “law” requiring them to chase profits. That really lets normal greedy bullshit off the hook too easily - laws don’t cause anti consumer behavior, garden variety assholes do because it makes them more money.
  - unmole 5y ago
    > Not sure why this is downvoted. publicly traded companies are legally required to go for maximum profit for their shareholders. This stupid meme needs to die. The management of companies has a fiduciary duty to act in the best interests of shareholders. That does not imply any legal requirement to maximize profit.

or less profit

TVs are already a low single digit profit margin business. https://www.macrotrends.net/stocks/charts/VZIO/vizio-holding/profit-margins https://www.macrotrends.net/stocks/charts/VZIO/vizio-holding...

scq 5y ago
That depends on the market positioning. High end LG and Samsung TVs have a healthy margin. In the first half of 2018, LG Electronics' operating profit margin on their TV segment was 12.4% due to strong OLED sales[0]. 0: http://www.businesskorea.co.kr/news/articleView.html?idxno=24794 http://www.businesskorea.co.kr/news/articleView.html?idxno=2...
- tyrfing 5y ago
  3.3% for LG last quarter, that 2018 number is better than anything they've seen in the last 2 years. Samsung is losing money manufacturing panels, but their reports are a mess. For comparison, Apple is at 31%, Walmart is at 4.5%.
  - stjohnswarts 5y ago
    Wow, that's really surprising. I figured people were doing more TV and streaming during the boredom of the covidapocalypse
    - lotsofpulp 5y ago
      Profit margin is not necessarily a function of how much utility your product provides.

willcipriano 5y ago

Less profit per unit, you may sell more units than others and make more overall profit.

tnel77 5y ago

I think that’s illegal.

judge2020 5y ago
Not sure why this is downvoted. publicly traded companies are legally required to go for maximum profit for their shareholders. Without some Announcement like “we’re going to be making privacy friendly TVs, but customers will be paying more to make up for the lost ad revenue”, it would be pretty bad mismanagement for a company to not show ads somewhere in their consumer TVs when every one of their competitors is doing just that.
- colejohnson66 5y ago
  It’s downvoted because it’s wrong; It’s a myth. There is no “legal fiduciary duty” to maximize profits. There is a fiduciary duty to the shareholders, but only in the sense of not wanting to be voted off the board and possibly sued if you mislead them. If the whole board agrees on your plan to bank the company on a possible suicide move, you’re fine.
- mikeyouse 5y ago
  No they really aren’t, this is a common but silly misconception. Managers have a fiduciary duty to their shareholders but there’s a huge amount of latitude in what that means with the only real bright line rules being things like “don’t improperly enrich yourself with company assets”. If managers want to sell tvs without ads, they absolutely can. If the board (which represents the shareholders) disagrees with that decision, they can fire the managers, but there’s no “law” requiring them to chase profits. That really lets normal greedy bullshit off the hook too easily - laws don’t cause anti consumer behavior, garden variety assholes do because it makes them more money.
- unmole 5y ago
  > Not sure why this is downvoted. publicly traded companies are legally required to go for maximum profit for their shareholders. This stupid meme needs to die. The management of companies has a fiduciary duty to act in the best interests of shareholders. That does not imply any legal requirement to maximize profit.