Overall, LG’s revenue fell 7.6 percent year-on-year, but its mobile business faired fairly well in comparison to other units. The company made just $222.25 million on all that revenue. Shrinking global TV sales aren’t helping either, with the issue worsened by narrow profit margins due to weak currencies in emerging markets. However, it said it was confident that it can recover lost ground in the third quarter with new products and more effective marketing.
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The company reports its lowest quarterly operating profit since Q4 2013 – KRW244 billion ($211 million) is down 60% from KRW610 billion the previous year.
Korea’s LG shipped a (then) record 14.5 million smartphones in the second quarter of 2014, but now, a year later, it’s a different story.
The LG Home Appliance & Air Solution Company reported sales of KRW 4.49 trillion (USD 4.09 billion), an increase of 10 percent from the previous quarter. This was offset by 36 percent year-over-year growth in North America sales, due to a better performance of mid-range smartphones and tablets, and a record of over 8.1 million LTE smartphones sold in the quarter. Along that line, the company said it will “more aggressively implement its dual strategy focusing on both premium devices as well as mid-range smartphones”.
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It’s not all bad news for LG, however.
