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LG sees record smartphone sales during Q1 2014, revenue is also up

Posted: , by Peter K.

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LG sees record smartphone sales during Q1 2014, revenue is also up
LG just released its financial results for the first quarter of the year. It seems that things are going well for the tech giant, as its revenue increased 6% year-over-year to $3.19 billion. Additionally, the operating margins of LG have also experienced a spike compared with the previous fiscal quarter. The giant says that this is mostly due to two reasons - the release of the LG G Pro 2 phablet on the domestic South Korean market and more efficient marketing spending. Kudos for the latter, LG!

However, LG does not reveal information about the profits that its mobile division accounted for during the quarter.

But what's significantly more interesting is the disclosed data about the amount of devices LG shipped during the quarter. We have a new record here, folks! The manufacturer revealed that it has sold more than 5 million LTE-enabled smartphones during the quarter – this is an all-time record for LG. As a side comparison, the company states that it had sold 79% less of these a year ago. LTE-enabled smartphones are now responsible for 41% of LG's smartphone sales, whereas back in Q1 2013, 4G-capable devices comprised just 27% of all phone shipments of the company.

As a whole, the tech giant revealed that it has shipped 12.3 million smartphones during the first trimester of the year. It's unclear if we have a record here, however, the company claims that this amount of smartphones makes no more or less than 75% of all mobile device shipments that LG is responsible for – hence, simple calculations reveal that the giant has sold roughly 16.4 million handsets for the said time period.

The current quarter, Q2 2014, is also expected to be record-breaking for LG. Some analysts expect LG to sell around 15 million smartphones during Q2, which will beat all previous records. Additionally, the company is anticipating increased revenues during the second quarter and the main reasons for these expectations are the release of the upcoming flagship, the LG G3, as well as a "wider roll-out of the mass-tier L Series III". You got that right, LG actually confirmed that the flagship will be released some time during the next quarter!

Hopefully, the G3 will help LG see even bigger operating revenues after it gets released. You can check out our rumor roundup of the anticipated flagship here.

source: LG

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posted on 29 Apr 2014, 09:32 5

1. jroc74 (Posts: 4720; Member since: 30 Dec 2010)


But but but....only Samsung is making any money with Android..........

Meanwhile.....LG in WP land....crickets....

Like some of us has said before, might not be as much as Samsung....but its something.

posted on 29 Apr 2014, 09:57 5

6. nokia12 (Posts: 320; Member since: 19 Nov 2013)


+1 that's just the excuse WP fanboys give...

Sony is doing awesome as well .. sure not as much as Samsung but they still live and make profits both Lg and sony are recovering very good..

Htc - thanks to their camera,overpricing,marketing strategy they are where they should be..

even local chinese and indian brands are making good profits..

Lenovo is also very big now after acquiring moto

posted on 29 Apr 2014, 11:38 2

15. Finalflash (Posts: 1690; Member since: 23 Jul 2013)


It's not just the WP fanboys but recently the iFans have also been saying that Samsung was the only profiteer on Android (they apparently moved the goal posts to who is getting shafted harder by their respective allegiances). This should kind of shut the profit=winner crowd up a bit seeing as how Samsung is losing them as others gain. Level competition is the only way for consumers to win and therefore, Android is the only ecosystem where consumers stand a chance.

posted on 29 Apr 2014, 10:03 5

7. PBXtech (Posts: 973; Member since: 21 Oct 2013)


It just seems like yesterday that someone was telling me only Samsung makes money with Android. ;-)

LG, more outstanding phones like the G2, please.

posted on 29 Apr 2014, 13:55 1

21. Ashoaib (Posts: 1900; Member since: 15 Nov 2013)


Bcoz LG is making nice phones recently but it is taking market out of samsung or other androids mostly not iphone or WP as oppose to some people above are refering WP and apple in their comments...

posted on 03 May 2014, 06:50

31. mrdoubleb (Posts: 19; Member since: 06 Sep 2012)


see my post below... if you read their ER, they actually lost $8.5 million on their phone business this quarter. So yes, Samsung is still the only one making money on Android, and pretty much Sammy and Apple are the only one making money on phones.

Last slide: lg.com/global/pdf/1Q14_Earnings_English_FINAL.pdf

posted on 29 Apr 2014, 09:36 4

2. itsdeepak4u2000 (Posts: 2590; Member since: 03 Nov 2012)


Good to see LG is gaining otherwise BB, Nokia, HTC, etc. all are reporting losses.

posted on 29 Apr 2014, 09:40 1

3. BattleBrat (Posts: 1069; Member since: 26 Oct 2011)


It took me a while to recognize it. But people have grown tired of Samsung just like they grew tired of HTC before it. Its not that LG is that good of a phone. They have so so hardware no worse than Samsung. But their software is lacking. it is a plastic phone with bad software skin just like Samsung. HTC made a good hardware but pissed people off with the battery lifethey did good with the one but the camera held it back. Motorola made solid hardware with decent software skin but pissed many people off with the Droid x2 and Bionic

posted on 29 Apr 2014, 09:53 1

5. jroc74 (Posts: 4720; Member since: 30 Dec 2010)


Yea...those 2 phones turned quite a few ppl away from Moto...and its no surprise those 2 phones were the most buggy Moto phones in recent memory.

From the RAZR on up Moto has done a better job.

posted on 29 Apr 2014, 10:06 3

8. PBXtech (Posts: 973; Member since: 21 Oct 2013)


Totally disagree about LG, I find their skin features are extremely helpful and easy to use. Some are gimmicks, but so are Samsung's. Only thing I'd really like to see changed is the brightness and volume to be removed from the notification center, it takes up way too much space.

posted on 29 Apr 2014, 10:28 2

10. jroc74 (Posts: 4720; Member since: 30 Dec 2010)


I agree.

There was a time when LG and Samsung were the only UI's to really reach out there as far as features.

HTC and Samsung were the only ones doing composite TV Out before HDMI was put in Android phones...

LG and Samsung both introduced tilt to zoom, scroll, pan, something...they both kinda went away from it or it isnt marketed as much now.

posted on 29 Apr 2014, 14:01

22. Ashoaib (Posts: 1900; Member since: 15 Nov 2013)


Extremely helpful bcoz they are following samsung's useful features... some features are gimmicks bcoz again they are following samsung's gimmicky features

posted on 29 Apr 2014, 09:45 4

4. rantao333 (Posts: 230; Member since: 21 May 2013)


LG has higher quality, better feature and outlook phones

they just lack of marketing campaigns like sxxsxxg.

sadly, ppl are brainwashed easily.

posted on 29 Apr 2014, 10:58

12. ILikeBubbles (Posts: 302; Member since: 17 Jan 2011)


i agree with quality and perhaps even better features but they haven't released a phone that's been craveable in my eyes. i've always wanted to get into LG because i love their style in almost everything else they make (appliance, tvs, etc...) but their phones just don't do it for me.. so until they can rival HTC in aesthetics i'm sticking with my "one" series.

posted on 28 Jun 2014, 06:05

32. aydell2123 (Posts: 16; Member since: 28 Aug 2013)


really..so ppl are brainwashed?? so its not the fact samsung has the best battery life.best screen.fastest processor. one of if not the best camera.s-pen on note 3 is a must have in my life for everyday use...and im still looking for those gimmicks. ..note 3 & s5 has alot of features...which is why I buy samsung. ...after switching from apple to htc....I seen why ppl buy samsung...its the best!!! period

posted on 29 Apr 2014, 10:22 2

9. ThreeFourSeven (Posts: 34; Member since: 23 Nov 2011)


While some people are still convince you can't make any money using android.

posted on 29 Apr 2014, 10:40 1

11. papss (unregistered)


Glad to see LG doing so well..maybe I missed it but is this only the phone business or LG as a whole? From what I gathered they didn't disclose the mobile profit

posted on 29 Apr 2014, 11:10 4

13. DigitalJedi_X (banned) (Posts: 202; Member since: 27 Apr 2014)


It's just for its phone business.

posted on 29 Apr 2014, 11:22

14. banglazbless (Posts: 49; Member since: 05 Feb 2014)


Listen to all these silly little comments, who the hell says only samsung can make money? Look lg is living in samsung's shadow, that's the only reason why this is happening, take for instant everyone else who's a major player in the android space, they're all loosing money. Lg should kiss samsungs feet and so does you guys lol.

posted on 29 Apr 2014, 11:53 1

16. jroc74 (Posts: 4720; Member since: 30 Dec 2010)


Who says Samsung can only make money? Try many WP fans. Or many who are anti Android, Google.

posted on 29 Apr 2014, 12:03 1

17. lallolu (Posts: 230; Member since: 18 Sep 2012)


It is not surprising with them having Lg G2, G2 pro, flex, etc. Also they have become better at updating their phones.

posted on 29 Apr 2014, 13:13

18. Tomfromsouth (Posts: 51; Member since: 02 Apr 2012)


Just bought the G2, was about 40% cheaper than galaxy s5 in South Africa. Couldn't be happier, camera, battery (and recharging takes so quick) are outstanding. Remarkable phone for the price.

Software is great, nice features especially Knock on feature, although coming from HTC, the UI needs a decent designer, because Sense is without the doubt the best looking interface.

Good Job LG I would happy recommend your phone to anyone who asks.

posted on 29 Apr 2014, 13:36

20. azers07 (Posts: 27; Member since: 17 Aug 2013)


Want to change from HTC flagship to LG flagship. But for me UI is quite important. Do you think it is worth of it?

posted on 29 Apr 2014, 13:14 1

19. azers07 (Posts: 27; Member since: 17 Aug 2013)


They haven't introduced G3 and didn't release G pro 2 in EU. That will make a huge difference

posted on 29 Apr 2014, 18:43 1

23. 3rdDegree (Posts: 171; Member since: 13 Jul 2013)


Guys please, let's just leave samsung out of this for now and focus on LG's efforts. They've finally started playing off.

posted on 29 Apr 2014, 19:44

24. refillable (Posts: 630; Member since: 10 Mar 2014)


Well Done! They deserve it.

posted on 30 Apr 2014, 02:05

25. mrdoubleb (Posts: 19; Member since: 06 Sep 2012)


LOL. You guys do realize there is a difference between revenue and profits, right?

"However, LG does not reveal information about the profits that its mobile division accounted for during the quarter."

Yeah, so they made tonns of money on this, they just don't like revealing that. Makes perferct sense.

Hint: last August Sony revealed their smartphone business had a revenue of $4 Billion. Net profit? $60 Million... That's how much Samsung spends on pen & pencils.

posted on 30 Apr 2014, 08:02

28. jroc74 (Posts: 4720; Member since: 30 Dec 2010)


Doesnt matter.....

Some say Samsung is the only Android OEM that is making money.
Article is about LG seeing record smartphone sales during Q1 2014.

Therefore...Samsung isnt the only one making money with Android. Even if its 1/10 of what Samsung makes....its still more than nothing.

Net profit is net profit.

Put it this way.....which do you think LG is more happy with ...Android...or WP...

posted on 03 May 2014, 05:21

29. mrdoubleb (Posts: 19; Member since: 06 Sep 2012)


Once again: the only thing the article says about net profit is that LG REFUSES TO DISCOLSE IT. They could very well be losing money on record revenue. No one knows.

Why do you think a company is boasting about having record revenues but is silent on net profit?

posted on 03 May 2014, 06:47

30. mrdoubleb (Posts: 19; Member since: 06 Sep 2012)


And if you do dig deeper, you can find the numbers. Go to the last page of their Q1 Earnings Report: They lost 8.8 Bn KWN or abour $8.5 million on their phone business in Q1.

lg.com/global/pdf/1Q14_Earnings_English_FINAL.pdf

posted on 30 Apr 2014, 07:04

26. 3rdDegree (Posts: 171; Member since: 13 Jul 2013)


I'm sure most of us are well aware of that. LG's profit margin may not have been significant because of the company's record expenditure on global marketing.

posted on 30 Apr 2014, 07:52

27. DONUT (Posts: 307; Member since: 27 Jun 2013)


had LG released the G Pro 2 worldwide, they would probably would have made more money and sold more. but nonetheless, congrats LG on the job well done :)

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