LG's mobile division goes from black to red ink in fourth quarter of 2013
LG sold 13.2 million phones in the quarter, a gain of 54% over the the 2012 period, and an 8.3% gain over the 12 million sold in the 2013 third quarter. 2013 revenue for the mobile division was 12.97 trillion won ($11.85 USD), a 29% gain over the figure reported for 2012. For the fourth quarter, mobile sales rose 18% year-over-year, to 3.59 trillion won ($3.38 billion USD).
According to the report, for the three month period LG spent more money marketing its LG G2 and LG G Flex handsets, negating the higher number of phones sold. The LG G2 flagship model has been critically acclaimed, earning a space as one of our smartphones of the year for 2013. While LG was hoping to sell 10 million units of the LG G2, thus far sales have been tepid, in a range of 2 to 3 million units.
The company just announced on Monday morning Korean time, that the LG G Pro 2 will be unveiled next month. Most likely, the wraps will come off the device at MWC in Barcelona.
1. ScottSchneider (Posts: 324; Member since: 06 Dec 2011)
Every Major OEM got a share of the Flagship PIE with Sony taking on the Z1, LG taking its G2 and HTC with its One.. These Flagship were praised by each and every critic for its build especially Sony and HTC.. G2 for its power and battery... But None were close to the S4 or the Monsterous Note3... No matter how good the Flagship is from any OEM, we always benchmark Samsung... True Story.
3. Napalm_3nema (Posts: 1419; Member since: 14 Jun 2013)
I was in a T-Mobile store waiting to exchange a faulty Z1S yesterday while a young lady was doing the switch from Sprint to T-Mo. The CSR asked her what phone she currently had, and what she wanted on T-Mo. She had an SGSII, and she told the CSR that she liked Android, so she wanted a Samsung. To her, Samsung was the only Android manufacturer. It wasn't some fanboy stance, just what she perceived to be true. When she heard about the G2, she was perplexed, especially since it was an Android phone that was measurably better in almost every way than the S4. She left with the G2.
4. x88yunkw (Posts: 79; Member since: 20 Aug 2012)
this shows the power of branding.
5 years back, when someone wanted to buy a handphone, NOKIA definitely the 1st choice, during that time, no one care about what is samsung, LG.
but now the story no more, smartphone? Samsung.
2. livyatan (Posts: 813; Member since: 19 Jun 2013)
So their numbers are ALL up, record revenue, record sales 54% jump y-o-y and 8.3% q-o-q.. but also a record marketing spending! So much they posted a loss.
Just goes to show it is not as simple as people like to think about the Samsung case.
Marketing comes with a cost
5. Finalflash (Posts: 2003; Member since: 23 Jul 2013)
So, it's an investment that will yield results in the future.