LG will unveil internet TV to counter Apple

Seoul: LG Electronics, the world's number two TV maker, plans to launch internet-enabled TV based on Google's platform in the US this week, as the South Korean firm seeks to gain a larger share of the emerging internet TV market.

The move reflects an aggressive push by the duo to defend against a potential threat from Apple, which reshaped the handset market with its iPhone smartphone and is widely expected to unveil a full-fledged TV product later this year or early next year.

"Production of Google TVs will start from May 17 from our factory in Mexico and US consumers will be able to buy the product from the week of May 21," Ro Seogho, executive vice-president of LG's TV business unit, said.

Google TV allows viewers to access Google services such as searches and YouTube videos on their television screens.

Ro said LG will decide whether to expand the offering to Europe and Asia after reviewing sales performance in the US market.

Lack of support

Research firm IHS iSuppli estimates the global internet-enabled TV market will grow nearly 60 per cent this year to 95 million sets, far outpacing the TV market overall, which is expected to expand by just two per cent.

The second version of internet TV by Google, which hopes to replicate the success of its Android mobile software in the TV market, comes after its previous model, unveiled in 2010, failed to catch on with consumers.

Google's attempt to capture the living room audience has seen limited success so far due to a lack of web content or support from hardware manufacturers.

TV manufacturers from LG to its bigger rival Samsung Electronics Co have their own internet-enabling TV platforms and are aggressively pushing their own technologies, along with Google TV, to gain the initiative and prop up margins with high-end products amid growing competition from low-cost producers.

LG plans to fit around 60 per cent of its TVs with its own NetCast platform installed, to allow viewers access to the internet, social networking and online games as well as LG's own TV applications.

LG saw its TV division's profit margin rising sharply to above four per cent in the first quarter, helped by strong sales of high-end models such as 3D TVs and internet-enabled sets, just when Sony Corp, Panasonic Corp and Sharp Corp expect to have lost a combined $21 billion (Dh77.1 billion) in the business year that ended on March 31.

LG doubled its share of the 3D TV market to 15.3 per cent in the fourth quarter of 2011 from earlier in the year.