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LG Electronics posts disappointing quarterly results: handset loss grows bigger

Posted: , by Victor H.

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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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posted on 26 Oct 2011, 08:15 2

1. arcq12 (Posts: 733; Member since: 13 Oct 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.

posted on 26 Oct 2011, 16:39

9. downphoenix (Posts: 3165; Member since: 19 Jun 2010)

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

posted on 27 Oct 2011, 06:53

11. arcq12 (Posts: 733; Member since: 13 Oct 2011)

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

posted on 26 Oct 2011, 08:54

2. snowgator (Posts: 3604; Member since: 19 Jan 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?

posted on 26 Oct 2011, 09:43

3. bigboss (Posts: 80; Member since: 26 Oct 2011)

LG= Life's Gone !!

posted on 26 Oct 2011, 10:30

4. terabyteRouser (Posts: 457; Member since: 18 Oct 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.

posted on 26 Oct 2011, 11:37

5. networkdood (Posts: 6330; Member since: 31 Mar 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.

posted on 26 Oct 2011, 12:45

6. lubba (Posts: 1313; Member since: 17 Jan 2011)

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

posted on 26 Oct 2011, 13:16 1

7. Joshing4fun (Posts: 1237; Member since: 13 Aug 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.

posted on 26 Oct 2011, 15:21

8. lubba (Posts: 1313; Member since: 17 Jan 2011)

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

posted on 26 Oct 2011, 18:45

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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