LG Electronics, a major manufacturer of mobile phones and flat screen televisions, swung to its first net loss in seven quarters, hit by falling prices for TVs and a hefty price-fixing fine slapped on its affiliate LG Display.

The US International Trade Commission agreed to investigate Samsung Electronics and LG Electronics based on a complaint filed by Eastman Kodak. Kodak submitted its complaint in November, charging LG and Samsung with violating patents in their camera phones and other mobile products. The relevant patents cover technology related to image capture, compression and data storage, and a method for previewing certain images.

Samsung Electronics believes that it needs steady growth strategy in order to narrow the gap with Nokia that takes 40% world market share. On contrary, LGE is seen to focus on enhancing fundamentals for mobile business, rather than unreasonable quantity expansion. The mobile phone market for next year is projected to see division in demand between premium and low price amid slow down in growth trend due to overall economic slow down. Recently, UBS lowered mobile phone market growth rate prediction for next year from 6% to 3%.