LG Electronics reported a 30 percent decline in third-quarter revenues from its mobile communications division, as the Korean company fell behind in the smartphone market. Mobile revenues dropped to KRW 3.224 trillion from KRW 4.627 trillion a year earlier, with handset sales down 31.9 percent to KRW 2.971 trillion. LG shipped 28.4 million phones in the quarter, down 10 percent year-on-year and down 7 percent from Q2. Mobile sales were up 17 percent sequentially in its home market Korea thanks to the new Optimus Q and rose 9 percent quarter-on-quarter in Latin America, but the company saw shipments decline in Europe and North America. The operating result at the mobile division moved to a loss of KRW 326 billion from a profit of KRW 469 million a year earlier, due to the weaker shipments and lower ASPs. LG predicted a better Q4 with the expansion of the Optimus One and new Windows phones, as well as seasonal effects. Market shipments are forecast up 17 percent from Q3 to around 307 million units, with LG's own sales up in the high single digits. LG said it will continue to target the mass market with basic touch and qwerty devices, while investing to regain a position in the premium market in 2011. LG Electronics reported total quarterly sales of KRW 13.43 trillion, down 2.1 percent from a year earlier, and net profit plunged to KRW 8 billion from KRW 911 billion, with operating profits falling in all its divisions.
