LG

LG's handset division reports $47 million profit for 2012

LG's handset division reports $47 million profit for 2012
Since we are not RefrigeratorArena or AirConditionerArena, we are indebted to LG for breaking down their quarterly earnings in such a way that we can easily find the information that our readers want to know about. We could tell you that LG made $80.75 million USD in 2012, or that a large fine because of cathode-ray pricing led to a $428.96 million loss in Q4, but that isn't the juicy stuff.

Instead, you want to know that the handset division reported a 14.7% quarter over quarter gain in revenue to 2.78 trillion KRW ($2.57 billion USD) which was a year-over-year gain of 3.1%. Profits of 55 billion KRW ($50.8 million USD) in the handset business for Q4 rose from a loss of 5 billion KRW last year. For the year, handsets brought 9.9 trillion KRW ($9.1 billion USD) into the company's coffers, a drop of 13.1% from 2011. For all of 2012, the handset division profited by 51 billion KRW ($47 million USD).

For the entire Mobile Communications division, which includes handsets, LG rose fourth quarter revenue 15% sequentially to 2.81 trillion KRW ($2.58 billion USD). The year-over-year gain was just 1.3%. Profit amounted to 51 billion KRW ($47 million USD). For all of 2012, Mobile Communications accounted for 10 trillion KRW ($9.2 billion USD) in revenue, a drop of 13.8%. Profits came to 59 billion KRW ($54.4 million).

Smartphone shipments rose 23% sequentially in Q4, from 7 million units to 8.6 million. Premium LTE handsets like the LG Optimus G and the LG Vu:2 increased sales in the fourth quarter, as did the LG L-series models and the back-in-stock Google Nexus 4.

source: LG via Engadget

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12 Comments

1. flower99

Posts: 54; Member since: Nov 18, 2012

i think revenue will increase more if nexus 4 manage the production well, but dont know about profit tho

9. Kuherrn

Posts: 16; Member since: Nov 09, 2012

Lg cannot mass produce the Nexus 4 because then it would be fierce competition with the other OEM's. Remember that Google is also heavily subsidizing the price and with the bang-for-buck value, all the other OEM's phone will have to share the limelight with the Nexus 4. If that were too happen, Google is going to have a bitter relationship with the OEM's. That's why the Nexus 4 keeps going out of stock. That's why you don't get the 300$ price point everywhere and that's why the phone is not being sold yet in my country...

11. jroc74

Posts: 6023; Member since: Dec 30, 2010

I seriously dont think there's stocking issues because Google wants to make the other OEM's happy. If they did that on purpose.....how do you think that would make LG feel? They're running a business too. The Nexus brand being popular works out better for Google. Making the manufacture of that phone happy works out better for Google. With the rumors about the Moto X being sold thru the Play Store.....you really think they are gonna play this game with that phone? It wont be a Nexus I hear....but it is supposed to have the price point.

2. Nathan_ingx

Posts: 4769; Member since: Mar 07, 2012

I think the Optimus G and Nexus 4 did LG some good.

3. wendygarett unregistered

My country doesn't offer optimus g but cost $500 on nexus 4 16gb... what about yours? :)

7. rusticguy

Posts: 2828; Member since: Aug 11, 2012

$600+ for Nexus4 16GB with only seller warranty in India.

8. wendygarett unregistered

Ok thanks :)

4. tiara6918

Posts: 2263; Member since: Apr 26, 2012

I wasn't expecting for the lg optimus vu2 to sell well do to that width, anyways I really think lg did a great job with the optimus g and nexus 4!

5. richardyarrell2011

Posts: 510; Member since: Mar 16, 2011

Lg Optimus G and Lg Nexus 4 is pretty soft. Samsung owns this space period.

6. cezarepc

Posts: 718; Member since: Nov 23, 2012

.....you forgot to mention how powerful your G-Note 2 is.

12. R-vjn

Posts: 301; Member since: Jan 07, 2013

can't swallow the fact that LG is doing well huh??? Its the fact deat with it friend..! And don't underestimate the Optimus G & the N4, they are the snappiest android devices you can actually find in the market..!

10. jroc74

Posts: 6023; Member since: Dec 30, 2010

Nice work LG. See.....Samsung isnt the only one making a profit. Might not be as much compared to Samsung....but its something.

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