LG Electronics profit takes a dive

Due largely to the 30% drop in revenue from its handset division, the profit margin of LG Electronics has shrunk with the eye-popping 99% in the third quarter of this year. The profit tumble has also been aided by lackluster demand for electronics in Europe and the US. In Q2 LG reported $724.5 million in profits, while for July, August and September the Koreans have eked out just $6.7 million. This figure was probably what forced the management shakeup recently.

The company is fully embracing Android, which has been the lifeline for most everybody but Apple and Nokia, and also aiming to be a premier partner to Microsoft by launching five Windows Phone 7 devices till year-end. The results in the fourth quarter will determine if these moves are successful.

source: LG