LG bounces back with solid smartphone sales in Q3
Sales of LCD TVs and home appliances drag down results
TechTrade | 25 Oct 2012 :
LG Electronics bounced back with better-than-expected profit in the third quarter thanks to robust smartphone sales offsetting weak demand for LCD TVs and home appliances.
For the quarter ended 30 September, net income swung to a profit of 157 billion won (€108 million) from a loss of 414 billion won a year earlier. Operating profit totalled 221 billion won, compared with a loss of 32 billion won in the year-earlier period, thanks to strong sales of LTE smartphones including the Optimus series in South Korea, Japan and the US, LG said during its earnings conference in Seoul on Wednesday.
Revenue fell 4% to 12.38 trillion won due to the continuing decline of feature phone sales, and sluggish demand for home appliances and air conditioning.
LG sold 7 million smartphones in the quarter.
It shipped 500,000 of its flagship Optimus G phones, mostly in South Korea, where it launched in September, and Japan, where it launched in October. It shipped about 50,000 of them to the US ahead of the phone's launch there, said Yoon Bu-hyun, a vice president of LG's Mobile Communications division.
The Seoul-based company will also release the Optimus Vu:2, a 5" 'phablet' (phone-tablet hybrid), in South Korea next month to rival Apple's iPhone 5, Samsung's Galaxy S III and Nokia's Lumia series.
LG is also expected to make a Nexus smartphone for Google, which will be unveiled next Monday.