Sunday , 15 December 2019
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LG mobile returns to profit on strong LTE smartphone sales

LG Electronics restored its mobile business to profit in the second quarter, helped by strong demand for its LTE smartphones. Mobile sales were up 16 percent from a year earlier and 6 percent higher versus Q1 at KRW 3.6 trillion. The operating profit rose to KRW 85.9 billion, after three quarters of losses. 

LG said it shipped 14.5 million smartphones in the quarter, up 20 percent year-on-year and 18 percent more than the previous quarter. LTE shipments more than doubled year-on-year, driven by the launch of the flagship G3 and more mass-market models. LG also reported a strong quarter in North America, where shipments rose 39 percent on a sequential basis, and in its home market Korea, where shipments increased 17 percent on the same basis. 

The company said the return to profit was due to the increased sales volume, cost controls and a better product mix, with an increased share of sales from the G and L series phones. LG expects LTE to lead the market growth going forward, but price competition will intensify, both in the premium and mass-market segments. The company plans to strengthen its line-up with additional G3 variations and more mass-market phones in the L series. 

LG’s other divisions reported flat to lower sales in the quarter, leading to only a 0.9 percent rise in group sales to KRW 15.37 trillion. Operating profit improved to KRW 606 billion from 479 million a year ago, and net profit rose to KRW 412 million from 156 million. 

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