LG is rumoured to be stopping television manufacturing, as it did with its smartphones. They were also rumoured to sell their TV business to Hisense.
The Core Controversy
A rumour circulated within LG after a South Korean media outlet, EBN, published a report claiming that senior LG executives flew to Beijing, China, to meet with high-ranking Hisense officials.
The main agenda of the meeting was to explore strategic restructuring options for LG's television division. The primary focus was to negotiate a buyout or divestment where Hisense would acquire LG's TV manufacturing business.
LG officials initiated the meeting to develop an exit strategy due to deteriorating operating margins, which had dropped to 1% to 2%. As LG's television profits were shrinking each year, they needed to find a solution to this financial problem.
If LG sold a TV for ₹50,000 with a 1% to 2% margin, they would only keep a clear profit of ₹500 to ₹1,000. The other ₹49,000 went entirely toward the cost of building and shipping the TV. As this profit was dangerously low, the report claimed that LG wanted to hand the business over to Hisense.
Why The Rumour Was Highly Believable?
LG famously exited its smartphone business in 2021 after years of losses, and outsiders believed it might exit its TV business next.
The reports draw direct comparisons with SONY, which recently handed over the majority of the control of its Bravia TV lineup to TCL to cut manufacturing overhead.
Industry Context And Pressure
The rumours immediately drew the attention of the media and public as the legacy premium TV brands face mounting pressure from Chinese rivals.
Brands like TCL and Hisense have gained significant market share through aggressive pricing.
The competitive market price has reportedly compressed profit margins for premium-tier television manufacturing.
The Denial Of Rumours
As these rumours persisted, LG finally shut them down by issuing a formal regulatory filing and sending direct statements to major technology news outlets.
In the statement, they called these reports baseless, entirely speculative, and misleading, and confirmed to other media outlets that the rumour was completely false.
And that they will stay in the TV business and keep designing, manufacturing, and selling their own TVs globally, as they have been in this business for almost 60 years now.
Following LG's denial of all these rumours, EBN immediately removed the original article from its website for administrative review.
