LG

LG's latest earnings report shows 10 percent overall yearly growth, 2 percent in its mobile division

LG's latest earnings report shows 10 percent overall yearly growth, 2 percent in its mobile division

LG Electronics posted its Q1 2017 earnings report today, and things are looking pretty great for the company on pretty much all fronts. Its operating profits are up 9.7 percent over the same period last year, though its mobile division saw only 2 percent year-over-year growth.

The increase in smartphone revenue, which for Q1 2017 was 3.01 trillion won (USD 2.61 billion), was helped by the launch of its latest flagship, the LG G6, though its March 10 release date left it little time to leave a considerable mark on the company's profits. However, unit shipments increased by ten percent over Q1 2016, reaching 14.8 million units, which, as the report claims, is "in large part due to the Americas".

Apart from that, the LG Vehicle Components Company was the biggest winner of the past quarter, with its whopping 48 percent year-over-year increase in profits, while the LG Home Appliance & Air Solution Company had its best quarter since 2009.

As for the near future, the report doesn't paint a very pretty picture, at least when it comes to the company's mobile efforts. It lists both the heavy price competition in the mass-tier (read: cheap) smartphone segment, as well as the expected increase in competition in the flagship race as potential problems.

source: LG via TechCrunch

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5 Comments

1. bucky

Posts: 3774; Member since: Sep 30, 2009

LG makes great products but their problem is their products seem to always be in the shadow of Samsung.

2. tedkord

Posts: 17136; Member since: Jun 17, 2009

Their high end TVs are great, but their phones have been simply good. I have an LG TV in my living room, and it's fantastic (other than needing a mainboard replacement less than a year in, which was covered under warranty). But the LG bluray player I bought with it was nothing but problems.

4. Clars123

Posts: 1075; Member since: Mar 16, 2015

that is their own fault...they launched the G6 long before the S7 for example and here in the UK you can't even see one in stores whereas the S8 was in stores to check out the day after the announcement and all pre-orders ship tomorrow whereas until a week ago you could start pre-ordering the G6. With that in mind, it's easy for people to forget LG exists. They dont push their devices hard enough, or make stupid ads for them.

5. TerryTerius unregistered

People were saying that the time-gap would be an advantage for LG. I said it wouldn't make a difference, and I was right.

3. PHYCLOPSH

Posts: 643; Member since: Jun 28, 2014

2% isn't going to cut it. It is time to chalk up the G6 as a loss. The G5 was arguably a better device and its a year old. On to the G7 - give us back the notification LED and IR blaster, a HI-FI DAC for all, removable battery, and a minimum of 1/2.6" camera sensor, - oh and a current SOC. Do all that and you can compete with Samsung again.

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