Your browser does not support JavaScript!

Unpacking LG Electronics’ Stellar Q1 2025 Performance: TV Excellence, Appliance Momentum, and Subscription Innovation

General Report April 23, 2025
goover

TABLE OF CONTENTS

  1. Summary
  2. First‑Quarter 2025 Earnings Overview
  3. TV Division Performance Drivers
  4. Home Appliances Growth Factors
  5. Subscription‑Based Home Appliance Services
  6. Competitive and Market Context
  7. Conclusion

1. Summary

  • In the first quarter of 2025, LG Electronics achieved a historic consolidated revenue of KRW 22.7 trillion, marking the company's first instance of surpassing the KRW 22 trillion threshold. This milestone, which reflects a year-over-year increase of 7.8%, underscores LG's successful navigation through global economic challenges, bolstered by strategic advancements in its diversified business segments. Key factors driving this exceptional performance include a flourishing TV division, a robust home appliances sector, and the groundbreaking launch of LG Subscribe, a subscription-based service designed to meet evolving consumer preferences.

  • The results indicate significant growth in the TV division, particularly due to the success of the 2025 OLED evo series and the introduction of the affordable mid-range C5 series. This segment has solidified LG's position as a leader in the premium OLED market, capturing a commanding 52.4% global market share amid fierce competition from Samsung. LG's innovative integration of AI features and gaming enhancements has appealed particularly to tech-savvy consumers, further enhancing the consumer experience and reinforcing brand loyalty.

  • In the home appliance sector, LG has witnessed unprecedented demand for smart kitchen and laundry devices, driven by trends favoring automation and energy efficiency. The Home Appliance & Air Solution segment not only contributed significantly to revenue but also reflected the broader market shift toward IoT-connected solutions. The projected growth of the smart kitchen appliance market to approximately $3.2 billion by 2030 emphasizes the increasing consumer interest in smart technologies that enhance convenience and reduce energy consumption.

  • Moreover, the recent launch of LG Subscribe signifies a transformative shift in consumer behavior from ownership to subscription models. This service has gained considerable traction in Thailand, showcasing strong demand for subscription-based solutions across essential household items, thus establishing a promising recurring revenue stream that could enhance LG's market presence and consumer engagement.

2. First‑Quarter 2025 Earnings Overview

  • 2-1. Preliminary Q1 2025 earnings results

  • In the first quarter of 2025, LG Electronics reported unprecedented preliminary earnings, achieving a consolidated revenue of KRW 22.7 trillion and an operating profit of KRW 1.3 trillion. This remarkable milestone marks the first instance where LG Electronics has surpassed the KRW 22 trillion revenue threshold in a first quarter. The reported earnings reflect a significant year-over-year increase of 7.8%, underlining the company's robust performance despite prevailing global economic challenges. This achievement has been bolstered by strategic growth in diversified business segments, particularly in B2B and subscription-based services.

  • 2-2. Record-breaking revenue and operating profit figures

  • LG Electronics' operating profit has sustained a consistent level above KRW 1 trillion for six consecutive years, highlighting the company's stable profitability and solid financial health. The 2025 figures represent both an affirmation of LG's strategic focus on qualitative growth and enhanced efficiency across its operations. Notably, the Eco Solutions business has emerged as a critical driver, showcasing exceptional performance in both revenue generation and profit margins. The commitment to optimizing resource allocation and managing raw material costs effectively has further strengthened the operating leverage, supporting the financial framework necessary for such historic results.

  • 2-3. Comparison with previous quarters

  • The results for Q1 2025 illustrate a favorable comparison to prior quarters, particularly regarding the company's resilience amidst economic uncertainties. In contrast to Q1 2024, where revenue figures were relatively lower, LG's ability to maintain high operating profits even with slight declines in profit margins reflects its agility in adapting to market challenges. Analysts have highlighted this quarter as a pivotal moment for LG, especially considering analysts' concerns surrounding over-reliance on the home appliance sector. Concerns about changing demand dynamics, especially in connection with impending tariff measures, signal potential volatility in Q2 2025, which LG will need to navigate adeptly to maintain its growth trajectory.

3. TV Division Performance Drivers

  • 3-1. Success of 2025 OLED evo and mid‑range C5 series

  • LG Electronics' performance in the OLED TV segment during the first quarter of 2025 has been bolstered by the success of its 2025 OLED evo series and the introduction of the mid-range C5. The OLED evo series showcases advanced display technology, delivering brighter images and enhanced picture quality that position LG as a leading contender in the premium OLED market. Market analysis by Omdia indicates that LG maintains a 52.4% global market share in OLED TV shipments, securing its title as the industry leader for 12 consecutive years. The newly released C5 series has gained traction due to its impressive picture capabilities and affordable price in comparison to flagship models, making OLED technology more accessible to a broader audience.

  • 3-2. Adoption of AI‑powered features and gaming enhancements

  • The adoption of AI-integrated features in LG's OLED TVs has played a pivotal role in attracting tech-savvy consumers, particularly in the gaming demographic. The C5 model is equipped with an array of gaming enhancements, such as support for 144Hz refresh rates and variable refresh rate (VRR), which cater to the growing market for high-performance gaming. Additionally, AI-driven features improve user experience by streamlining content discovery and personalization. This integration of AI not only enhances entertainment value but also positions LG as a leader in innovation amidst intensifying competition, especially from rival brands such as Samsung which is aggressively expanding their own AI capabilities in TV technology.

  • 3-3. Integration of targeted on‑screen advertising via webOS

  • The strategic integration of targeted on-screen advertising within LG's webOS platform has marked a significant shift in how revenue is generated beyond traditional sales. The LG Ad Solutions platform aims to use its operating system, which powers approximately 200 million TVs globally, as the primary interface for accessing streaming content. This ambition is designed to create personalized advertising experiences for users based on their viewing habits. Recent insights reveal that LG expects record revenues from its advertising business this year, indicating a growing emphasis on monetizing the viewer's attention effectively. This pivot towards utilizing the home screen as an ad-supported media landscape exemplifies LG's commitment to innovation and strategic growth in the competitive landscape of connected televisions.

4. Home Appliances Growth Factors

  • 4-1. Surging demand for smart kitchen and laundry appliances

  • The home appliance sector has experienced unprecedented growth, particularly in smart kitchen and laundry appliances, reflecting a broader trend toward automation and efficiency in households. As of Q1 2025, LG Electronics reported that its Home Appliance & Air Solution segment significantly drove its revenue growth, benefitting from consumers' increasing preference for appliances that offer connectivity and energy efficiency. Notably, the smart kitchen appliances market alone is projected to reach approximately $3.2 billion by 2030, showcasing a substantial rise from its 2023 valuation of $1.8 billion. This surge can largely be attributed to the rising adoption of smart home technologies, driven by a growing consumer base that prioritizes convenience, efficiency, and intuitive usage through IoT-enabled devices.

  • The dominant factors in the demand for smart kitchen appliances include advanced features such as remote monitoring, automated cooking processes, and energy management. Innovative products such as smart refrigerators and AI-powered ovens have emerged as key players in this space, allowing significant functional enhancements while improving energy consumption patterns. In fact, manufacturers are increasingly focusing on creating offerings that facilitate meals, track nutritional information, and even adapt cooking methods through machine learning algorithms, which personalize cooking experiences based on user preferences.

  • 4-2. Emphasis on energy efficiency and IoT integration

  • Amid growing environmental consciousness, the demand for energy-efficient solutions has escalated. Recent market research indicates that this emphasis on energy efficiency has been critical to the broader acceptance of smart appliances. Furthermore, government initiatives worldwide have been promoting sustainable technologies and smart city developments, which have positively impacted consumer adoption rates. LG's integration of IoT in their product design has enabled appliances to communicate effectively with one another, leading to enhanced energy management and optimization.

  • The smart appliances market's growth reflects increased interest in connected devices that not only perform traditional functions but also integrate seamlessly into a broader smart home ecosystem. The utilization of technologies like Wi-Fi and Bluetooth allows users to control their appliances remotely through smartphones and voice commands, facilitating real-time monitoring while contributing to lower energy consumption. As a result, energy-efficient appliances are no longer just an added benefit; they are becoming a prerequisite for consumers increasingly inclined toward sustainability and environmentally friendly living.

  • 4-3. Contribution to record appliance revenue

  • The surge in demand for smart appliances has led LG Electronics to achieve its highest-ever first-quarter revenue, with consolidated revenue reaching KRW 22.7447 trillion in 2025. This remarkable performance underscores the critical role of the home appliance sector in LG's overall strategy and success. Analysts have noted that the appliance division remains central to LG's revenue stream, driven by qualitative growth in high-margin areas such as B2B sales and subscription-based services.

  • The company has strategically diversified its offerings to accommodate changing consumer behaviors, enhancing its product lineup to include subscription-ready options that bundle smart appliances with value-added services. The proactive approach to expanding subscription services not only mitigates risks associated with traditional retail but also caters to modern consumer expectations for flexibility and direct access to technology. Such strategic initiatives are forecasted to position LG for continued market leadership, reflecting the alignment of innovation with consumer demand in a rapidly evolving marketplace.

5. Subscription‑Based Home Appliance Services

  • 5-1. Launch of LG Subscribe in Thailand

  • LG Electronics launched its subscription service, LG Subscribe, in Thailand in October 2024. This initiative marks a significant shift from traditional ownership of home appliances to a more flexible subscription model. As the first company to introduce such a service, LG aims to cater to modern consumers' preferences for convenience and flexibility. With an impressive portfolio of 14 product categories, LG Subscribe includes over 70 models ranging from essential items such as water purifiers to premium televisions.

  • 5-2. Shift from Traditional Ownership to Subscription Paradigm

  • The introduction of LG Subscribe represents a notable evolution in consumer behavior, moving away from conventional one-time purchases toward a subscription-based approach. This model is particularly appealing to urban professionals and young families—demographics that value the affordability and convenience of not having to make substantial upfront investments in home appliances. Subscribers benefit from regular maintenance and full warranty coverage, which further enhances the appeal of this innovative service.

  • 5-3. Impacts on Consumer Engagement and Recurring Revenue Streams

  • Since its launch, LG Subscribe has experienced remarkable success in Thailand, particularly with appliances like washing machines, air conditioners, and water purifiers, reflecting a strong consumer demand for subscription-based solutions. This success not only accelerates consumer engagement but also establishes a promising recurring revenue stream for LG. The company is targeting annual sales of $100 million within three years of launching the service, demonstrating a robust commitment to expanding its market presence. Additionally, LG plans to increase the number of LG Subscribe stores from 25 to 150 by the end of 2025, aiming to enhance accessibility and awareness of the subscription model across the country.

6. Competitive and Market Context

  • 6-1. Renewed OLED TV rivalry with Samsung and AI‑TV positioning

  • As of April 2025, the competition between LG Electronics and Samsung Electronics in the OLED TV market is intensifying, particularly with the introduction of AI-powered television technologies. Both companies are aggressively seeking to consolidate their market share within the premium segment. Recent reports indicate that Samsung claims a dominant position, asserting it holds approximately 60% of the domestic market share for OLED TVs sized 77 inches and above. However, LG disputes these figures, citing research from Omdia that suggests it retains a commanding 74.2% market share in the same segment throughout Asia (excluding China and Japan).

  • This competitive landscape is further complicated by Samsung's rapid emergence in the OLED market, moving from a mere 3.1% global market share in 2022 to an estimated 23.5% by the end of 2024. Samsung’s strategy includes a comprehensive lineup of OLED TVs equipped with its proprietary Vision AI technology, which aims to enhance the viewer experience. Conversely, LG has maintained a 52.4% global market share in OLED TV shipments, marking its twelfth consecutive year as the industry leader. Despite LG's leadership, the growing presence of Samsung underscores a challenging rivalry that escalates as both firms innovate further in AI integration.

  • In addition, both companies are expanding their offerings in the broader AI TV market. For example, in early April 2025, Samsung orchestrated a strategic launch of pre-orders for its AI TV lineup, which directly coincided with LG's product announcements. In response, LG has already begun selling its AI-enabled OLED TVs across multiple European markets, showcasing its commitment to remaining competitive in this evolving landscape.

  • 6-2. Global smart appliances market outlook and CAGR through 2032

  • The global smart appliances market is projected to experience substantial growth, with an expected value increase from its current standing in 2025 to approximately $93.03 billion by 2032, reflecting a compound annual growth rate (CAGR) of 11.5%. This growth trajectory is driven by rising consumer demand for energy-efficient and AI-integrated solutions in the home environment. The increasing penetration of smart home technologies, alongside advancements in Internet of Things (IoT) and voice-assisted devices, is further propelling market expansion.

  • Key factors such as government initiatives promoting sustainable solutions and the integration of machine learning for enhanced user experiences are also expected to transform the market landscape. As energy efficiency becomes a priority for consumers, manufacturers are compelled to innovate, leading to more connected and intelligent home solutions. The high demand for smart kitchen appliances, particularly smart refrigerators and ovens, is expected to dominate market revenues in 2025. Smart security appliances, however, are anticipated to witness the fastest growth due to urbanization and increasing safety concerns.

  • Despite the optimistic market outlook, challenges remain, including the elevated costs associated with smart appliances compared to traditional models, cybersecurity risks linked with IoT devices, and issues around device interoperability. As LG strategically positions itself to leverage these trends, the company is poised to benefit from its strong emphasis on smart appliance technology and AI integration.

  • 6-3. LG’s strategic positioning across TV, appliances, and services

  • LG Electronics is solidifying its strategic positioning in the competitive landscape of TVs, appliances, and ancillary services. The company's emphasis on premium OLED technology and AI integration stands as a cornerstone of its marketing and innovation strategy. By harnessing cutting-edge technology and focusing on consumer-centric features, LG aims to differentiate itself amid intense competition from rivals like Samsung and emerging market players. This is evident in LG's commitment to expanding its product offerings in the smart appliance category, where connectivity, energy efficiency, and user interaction are paramount.

  • Moreover, LG's dynamic approach to integrating its product lines through its proprietary operating system, WebOS, enhances its capacity to deliver a unified user experience across devices. This integration not only fosters customer loyalty but enables LG to capitalize on advertising revenues through enhanced viewer engagement. By transforming its smart TVs into key launching points for streaming content and advertising, LG is potentially redefining the convergence of technology and consumer media consumption.

  • In addition, LG's foray into subscription-based services through initiatives like LG Subscribe signifies its intent to innovate around consumer ownership models, providing an alternative to traditional sales approaches. As the market for smart appliances continues to grow, LG's strategic positioning, particularly its focus on sustainability and intelligent technology, reflects a forward-looking vision that could sustain its competitive edge.

Conclusion

  • The record results for LG Electronics in Q1 2025 epitomize a comprehensive, multi-faceted strategy that successfully combines cutting-edge OLED technology, AI-driven enhancements in television products, an expanding portfolio of energy-efficient home appliances, and an innovative approach to consumer engagement through subscription services. The interplay of these elements not only reflects LG's robust competitive positioning but also highlights the effectiveness of its strategic pivots amid an evolving marketplace.

  • Looking ahead, it is imperative for LG to expand the LG Subscribe model beyond its initial market in Thailand to capture broader consumer interests worldwide. Additionally, deepening AI integration across all product lines will be essential for maintaining technological leadership and enhancing user experiences. LG's innovative capabilities in sustainability also provide a competitive advantage, as consumers increasingly prioritize environmentally friendly options. By prioritizing these initiatives, LG can sustain its growth momentum and maximize shareholder value throughout 2025 and beyond, positioning itself as a forward-thinking leader in both the consumer electronics and smart home markets.

  • In an environment characterized by rapid technological advancements and shifting consumer preferences, LG's ability to adapt and innovate will be crucial for navigating challenges and seizing opportunities to strengthen its market leadership, while setting a benchmark for excellence in the home electronics sector.

Glossary

  • LG Electronics: A multinational electronics company based in Seoul, South Korea. As of April 2025, LG is recognized for its leading innovations in consumer electronics, home appliances, and display technologies, particularly OLED and AI-integrated devices.
  • First-quarter revenue: The revenue generated by LG Electronics during the first quarter of 2025, amounting to KRW 22.7 trillion. This figure represents the first time the company surpassed the KRW 22 trillion mark, reflecting a year-over-year increase of 7.8%.
  • TV division: Refers to LG Electronics' segment dedicated to manufacturing and selling televisions, which has shown remarkable performance in Q1 2025 due to successful product launches like the OLED evo and C5 series.
  • OLED: Organic Light Emitting Diode technology used in screen displays, known for their vibrant colors and deep blacks. LG leads the market in OLED TVs, having achieved a 52.4% global market share as of early 2025.
  • Smart appliances: Home appliances equipped with internet connectivity and smart technology that allow users to control and monitor them remotely. Demand for such devices surged in early 2025, driven by consumer preferences for energy efficiency and automation.
  • LG Subscribe: A subscription-based service launched by LG Electronics in Thailand in October 2024, enabling consumers to access a variety of LG appliances without outright ownership, thereby catering to evolving consumer needs for flexibility.
  • AI TV: Televisions that incorporate artificial intelligence features to enhance user experience by personalizing content recommendations and streamlining navigation. LG’s integration of AI technologies in its OLED TVs is a crucial aspect of its competitive strategy.
  • Subscription model: A business model where consumers pay a recurring fee to use a product or service. LG's adoption of this model through LG Subscribe indicates a shift in consumer behavior from ownership to temporary access.
  • Market outlook: An analysis that reflects current and predicted market conditions. The outlook for LG's smart appliances market is particularly positive, projected to reach a value of approximately $93.03 billion by 2032, with a CAGR of 11.5%.
  • B2B: Business-to-Business, a segment where LG Electronics engages in selling products and services directly to other businesses, complementing its consumer sales and contributing to its overall revenue growth.
  • CAGR: Compound Annual Growth Rate, an important metric used to measure the mean annual growth rate of an investment or market over a specified period of time. As of 2025, it indicates strong growth potential for the smart appliances market.
  • webOS: LG's proprietary operating system used in its smart TVs. It facilitates targeted advertising and enhances user engagement by providing a platform for content access and interaction, reflecting LG's strategy to increase revenue through advertising.

Source Documents