At the mobile division, revenues were up 28 percent from a year earlier and 18 percent higher versus Q3 at KRW 3.59 trillion. The company shipped 13.2 million phones in the three months, up 54 percent year-on-year, thanks to strong sales of LTE phones and high-end devices such as the G2 and Nexus 5. However, the division posted an operating loss for a second consecutive quarter, of KRW 43.4 trillion, due to increased spending on marketing and branding and intensified price competition, LG said.
The company said it expects demand for LTE phones to remain strong, but tough price competition will continue as well, as the smartphone market becomes more a mass market. LG said it will continue to invest in its brand and launch new products to meet the diversification in consumer demand. Over the full year 2014, LG Electronics aims for an increase in revenues to around KRW 62.30 trillion, from KRW 58.14 trillion in 2013, and said it plans KRW 3 trillion in capital expenditures.
