Latest in Earnings

Image credit:

LG made 1.2 cents in profit for every phone it sold last quarter

2013 Shares
Share
Tweet
Share
Save

Sponsored Links

LG's latest earnings report shows just how tough the smartphone market is getting. On the one hand, LG Mobile shipped 8.1 million LTE smartphones, its best result ever. On the other hand, it sold fewer premium models in Korea and spent a lot of money marketing its flagship G4 in the US against models by Apple, Samsung, et al. (The company singled out Apple, saying that iPhone sales hurt its earnings this quarter.) The net result was a mobile operating profit of just 200 million won ($172,000) or 1.2 cents per phone. The good news is that the LG G4 has only been on sale in the US for two months, so it may have a stronger impact on LG's bottom line next quarter.

On top of a tight smartphone market, LG's Home Entertainment division said that global demand for LCD TVs was "soft," as revenue dropped 22.7 percent to 3.93 trillion won ($3.59 billion). However, the company is bullish on its 4K OLED TVs, and plans to expand its lineup "with newer designs at more attractive price points." For the quarter, LG saw an overeall drop in sales of 7.6 percent and earnings that were down 45 percent over last year to 226.4 billion won ($195 million). And if not for the company's profitable Home Appliance division, that number would've been a loss.

Source: LG
In this article: earnings, financials, lg, LG G4, sales
All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Comment
Comments
Share
2013 Shares
Share
Tweet
Share
Save

Popular on Engadget

Engadget's Guide to Privacy

Engadget's Guide to Privacy

View
AMD delays 16-core Ryzen 9 CPU to November

AMD delays 16-core Ryzen 9 CPU to November

View
Erica's modular synth helps you make music with preset cards

Erica's modular synth helps you make music with preset cards

View
TiVo gave its unannounced Edge DVR to a customer

TiVo gave its unannounced Edge DVR to a customer

View
Facebook will shut down Group Stories on September 26th

Facebook will shut down Group Stories on September 26th

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr