LG

LG sold more smartphones in Q2, but swung to a loss on marketing costs to fend off Chinese Androids

LG sold more smartphones in Q2, but swung to a loss on marketing costs to fend off Chinese Androids
LG Electronics just reported its earnings for the aurter ending in June, and its mobile division, that is of dear interest to us, returned a small loss of about $50 million, after two profitable quarters. The conglomerate itself was in the green, with a net profit of about $304 million.

The Koreans said they sold 4% less phones than in Q1, 13.1 million, with 7% less revenue, but the amount of smartphones in the mix was 44%, and the revenue from them was higher, thanks to the increased sales of LTE handsets. The loss stemmed from the fact that LG decided to increase its marketing expenses (those booth models in the thumbnail don't come cheap), in order to battle the barrage of Android phones from companies like ZTE and Huawei.

Its high-margin hopes are also pinned to the quad-core LG Optimus 4X HD, whose general availability wasn't until recently, so its revenue impact will only start showing in Q3.

source: LG


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3 Comments

1. pikapowerize

Posts: 1869; Member since: May 03, 2012

LG phonea are overprice for its hardware!!! will u ever buy a $250 phone for a nothing so special L5 with its 800Mhz? i hink not!! i hope LG will make cheap phones...

2. darktranquillity

Posts: 285; Member since: Feb 28, 2012

Remember phones like optimus one, so it isn't about being cheap. In android terms it is about updates. While others like samsung, htc, sony are almost finished updating their phones ics lg is yet to start and they've been like this forever. Honestly am so scared to buy an lg phone like many others.

3. u-suck-more

Posts: 529; Member since: Aug 26, 2011

what u mean yet to start? ICS for the Optimus LTE series has already started rolling out!

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