LG Electronics’ smartphone unit has been struggling in the red for the past three years, only turning its first operating profit this decade at the end of last year. LG might not be the largest or most popular smartphone manufacturer, but it has definitely been pulling out some top quality products recently, that are helping to turn the company’s fortunes around.
This recent success has caught the eye of a few investment firms, who are all fairly bullish on the company’s sales prospects for this year.
Last year LG pushed its way closer to third place in the smartphone market after managing to sell around 26.3 million handsets in 2012. Backed by this recent confidence, LG itself stated an ambitious 2013 sales target of 40 million units back in February which equates to a substantial 52% increase on the previous year’s performance.
However Korea Investment & Securities, Hyundai Securities, and KB Investment & Securities have each stated today that this target isn’t good enough, throwing in their own forecasts of 53.29 million and between 50.3 and 52.3 million respectively. It’s not often that 3rd party forecasts trump that of the actual business by such a margin, but strong demand for LG’s flagship Optimus G line-up, as well as mid and low-end smartphones, and a record breaking first quarter performance seems to have caused a bit of a stir.
LG Electronics sold a total of 10.3 million smartphones in the first quarter of this year, doubling the 4.9 million units sold over the same period last year. But Korea Investment is particularly keen on the Optimus G Pro, LG’s latest premium smartphone, projecting that it would sell more than 1 million units in every quarter of the year.
Hyundai Securities on the other hand praised LG Electronics on the variety of its smartphone line-ups which are seeing a sales boost across the world, especially in mid and low-end smartphone markets.
It certainly seems to me that LG has everything it takes to produce another excellent year: a great line-up of phones covering a wide range of markets, a new flagship model which expecting to sell well across the world, although the rollout could be faster, and don’t forget that all important deal with Google regarding the Nexus 4. I’m hoping that LG can continue this success, after all, Samsung could certainly use some competition.