LG

LG Electronics posts disappointing quarterly results: handset loss grows bigger

LG Electronics posts disappointing quarterly results: handset loss grows bigger
LG Electronics has posted its financials for the third quarter of 2011 and the light at the end of the tunnel grows dimmer for the Korean phone maker as it hasn't managed to patch the hole in its handset division. The company is in the red for a sixth consecutive quarter, but what's really troubling is that handset losses were more than double than those from last trimester. LG posted some $124 million (140 billion won) loss, widening from 55 billion won in Q2 2011.

The company underwent a major shift in top executives as Kon Bon-joon took over in an attempt to save the company's mobile department. Recovery has been slow up until this quarter, and even more so after the results for Q3 2011.

The results are partly explained by the lack of a worthy competitor to Samsung's Galaxy S II and Apple's iPhone in the quarter.

Other departments at LG were doing better as the company shipped a record number of TVs as that business remains profitable.

LG, the world's third biggest phone maker, however still has an ace up its sleeve – it has announced the LG Optimus LTE in Korea and it boasts a 4.5” IPS 720p screen and a 1.5GHz dual-core processor by Qualcomm. This definitely puts it on par with the cream of the crop Androids. The only big phone maker that still hasn't reported results is Samsung. The other Korean giant is expected to give us its quarterly results on Friday and - chances are - it will surpass Apple as the biggest smartphone maker globally.

source: LG

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11 Comments

1. arcq12

Posts: 733; Member since: Oct 13, 2011

I think they could have done better if they just use their own technologies on their own products rather than selling it to Apple.

9. downphoenix

Posts: 3165; Member since: Jun 19, 2010

amen to that. Why havent they utilized retina display on their own phones?

11. arcq12

Posts: 733; Member since: Oct 13, 2011

because they are also Apple's bit*hes..

2. snowgator

Posts: 3621; Member since: Jan 19, 2011

I think the Thrill is a great handset. LG can still do a good job when it so desires. I am waiting to see where the LG Fantasy, a CDMA Windows Phone, ends up. Verizon and it's 100 million strong subscriber base without a viable Mango option would be a great oportunity for LG to get a hit. I am sure Sprint users would welcome the choice as well, but it has a smaller base and the excitement of the iPhone 4 and 4S which is new to them. The Optimus LTE sure sounds like a contender. But as far as their Android offerings go, do they try a UI to set themselves apart, or just use vanilla Android?

3. bigboss

Posts: 80; Member since: Oct 26, 2011

LG= Life's Gone !!

4. terabyteRouser

Posts: 457; Member since: Oct 18, 2011

And these geniuses release a Froyo LTE phone after Gingerbread has been out for months and wonder why no one wants to buy their phone.

5. networkdood

Posts: 6330; Member since: Mar 31, 2010

Typically LG is good on Verizon and sucky with AT&T - the LG thrill, as I have been told, is a good phone - 50.00 deductible for insurance and dual core. But, they always seem to release inferior product to the Big 3 makers of Android - not sure why.

6. lubba

Posts: 1313; Member since: Jan 17, 2011

LG Double Play is an example of why they're losing. Only a low grade carrier like Tmo would sell crap like this.

7. Joshing4fun

Posts: 1249; Member since: Aug 13, 2010

Even though they have really been slacking lately, I'm not worried about them as much as I am Nokia or Sony Ericcson. Or even Blackberry! Wait now that I think about it, it seems like only Apple, Samsung, and HTC are actually doing well now.

8. lubba

Posts: 1313; Member since: Jan 17, 2011

To the the masses, Apple=god and Htc/samsung=higher specs, nothing more.

10. GeekMovement unregistered

Seems like LG has been overshadowed by Samsung for the longest time. They'll need to release a top notch android handset in order to catch up. I haven't been an LG fan, but we'll see if that changes sometime.

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