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I think that LG, Sony and Samsung are doing fine making TVs, perhaps for the lower end, the influx of cheaper sets is pressuring profit margins for this segment
by greedo 3y ago
I think that LG, Sony and Samsung are doing fine making TVs, perhaps for the lower end, the influx of cheaper sets is pressuring profit margins for this segment.
And gross margin is very relevant. Vizio is spending a lot of money either on general expenses, debt, administrative expenses etc. If you compare LG Display to Vizio, Vizio is spending 2x on Selling General and Administrative expenses. If they matched LG, that's an additional $130M in annual profits.
- lotsofpulp 3y agoWhy would it be profits? LG display loses money every year. https://www.lgdisplay.com/eng/company/investment/finance https://www.lgdisplay.com/eng/company/investment/finance How do you know which expenses outside of gross profit are necessary and not necessary? You don’t, so all you can do is look at net income / profit margin trends across many years for many businesses. If they are all low, then that means there is not much juice to squeeze.