LG suffers Q1 loss in mobile business as sales fall

News Wireless Global 28 APR 2016
LG suffers Q1 loss in mobile business as sales fall
LG Electronics reported a strong improvement in first-quarter profits, as losses in its mobile phone business were offset by growth in consumer electronics and home appliances. Operating profit rose 65.5 percent year-on-year to KRW 505.2 billion (USD 420.25 million), and net profit increased to KRW 198.1 billion from a loss of KRW 140.5 billion a year ago. Revenues were still down 4.5 percent to KRW 13.99 trillion. 

At the mobile division, sales were down 15.5 percent year-on-year and 19.3 percent lower versus Q4 at KRW 2.963 trillion. The operating result moved to a loss of KRW 202.2 billion from a profit of KRW 56.8 billion a year ago. LG shipped 13.5 million smartphones in the quarter, down 12 percent year-on-year and sequentially. LG said sales of mass-market phones fell due to weak economic conditions in the Latin America and CIS markets and its average selling price suffered. It also incurred additional costs for the launch of its new flagship device, the G5. 

The company expects intense price competition to continue due to the slowdown in the overall smartphone market. It targets growth through expansion of G5 sales and enhancing its mass-market range, while also improving its cost competitiveness to improve profitability. 

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Mobile

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Global

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Financial figures, Consumer devices, Handsets

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