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LG predicts a solid first quarter: up 66% from a year ago
LG has shared its earnings guidance for Q1, 2016, expecting to rake in ₩505 billion ($441 million) for the quarter, a massive 65.5% increase over the same period last year (₩305 billion). The figure is not only a vast improvement over LG’s past fortunes, but it also outstripped analysts predictions, which split the difference at ₩408 billion.
The uptake in revenue cannot be attributed to smartphone sales, despite the popularity of the LG V10. Falling television display prices and solid appliance sales are likely behind the upswing, but we’ll have to wait until the end of the month to get the final quarterly figures.
Unfortunately, LG doesn't expect this run of good fortune to last.
Unfortunately, this run of good fortune isn’t expected to last, with LG forecasting a 4.5% decline in Q2 compared with the same period last year. The uniqueness of the LG G5 will ensure it has solid interest, although the recent controversy regarding the primer coat on the LG G5’s metal chassis may impact sales a little.
The news comes hot on the heels of Samsung’s first quarter earnings guidance, in which the company forecasted an operating profit of ₩6.6 trillion ($5.7 billion). While the dollar figures are naturally very different, this only represents a 10% increase on Samsung’s year-on-year earnings. Nevertheless, Samsung’s Galaxy S7 and Galaxy S7 Edge sales are expected to be an improvement on last year’s Galaxy S6 series.