LG ships record number of smartphones, but profits take a hit
It’s been a mixed year so far for smartphone manufacturers, between them they’ve launched a selection of amazing smartphones over the past few months, but they all seem to be having poor or mixed results when it comes to finances.
LG doesn’t appear to be exempt from the trend either, as despite posting its best quarterly smartphone sales yet, the company’s profits are down from the same period last year.
The company’s second quarter earnings report shows that LG turned a profit of 156 billion won (around $139 million), which slightly lower than the 169 billion won posted during Q2 2012.
Smartphone sales were the star of the show, with year on year profits up 34.5%, helped on by a company record of 12.1 million smartphones shipped during the last quarter.
However, despite these sales increases, smartphone profits were down 2.7% compared with Q1 2013, suggesting that weak domestic demand and increased competition from rival handset launches is having a negative impact on LG’s profit margins.
This is far from a poor performance from LG, but the company would probably have liked to have had more profit to show for the strong growth in its mobile communications business. As for the rest of 2013, LG is looking towards the launch of its Optimus G2, as well as its L2 and F range of handsets, to strengthen the company’s competitive edge.