LG still has hard time Selling its Smartphones
The smartphone is probably the most popular consumer product at the moment, and people around the world are willing to pay to get access to newer and more powerful devices.
And while consumer interest definitely exists, the competition with the manufacturers is huge and even giant, as LG – no doubt one of the most famous names in the mobile business – has a problem with the distribution of its products.
For the third quarter of 2017, the company sold only 13.7 million smartphones – well ahead of those record-breaking 59 million in 2014. Due to this decline in mobile business, LG reported profit only in two quarters over the past two years.
LG was a leading name in the early years of Android, but Samsung’s success has shaken not only her, but also names like HTC, Motorola and Sony. Still, LG’s situation is not necessarily bad.
The company posted consolidated earnings for the period of $13.44 billion, an increase of more than 15 percent over the same period of the previous year.
Extremely positive quarterly results show increase financial parameters in all LG business divisions. The big news is the strong performance of the Home Entertainment unit, which has historically reached its highest levels both in terms of operating profit and operating margin.
In addition, the company’s operating profit for the quarter, amounting to $455.7 million, almost doubled its volume in 2017, which has a strong positive impact on the business performance of Home Entertainment and Home Appliances.
“The LG Home Entertainment Company reported its highest quarterly operating profit of KRW 458 billion (USD 404.39 million) and record high operating margin of 9.9 percent thanks to higher demand for premium TVs in the Americas and Asia. Sales improved 12 percent from the same period in 2016 to KRW 4.64 trillion (USD 4.09 billion).
LG’s strategy to overcome volume competition by expanding the premium component of its TV business focusing on OLED and Ultra HD TVs is proving to be a success. Sales of OLED units by the end of the third quarter were equivalent to the total number of units sold in 2016 which was more than double the 2015 figure.” Says the LG’s financial results.http://gizbrain.com/2017/10/27/lg-still-hard-time-selling-smartphones/https://i2.wp.com/gizbrain.com/wp-content/uploads/2017/10/LG-Logo.jpg?fit=1166%2C522https://i2.wp.com/gizbrain.com/wp-content/uploads/2017/10/LG-Logo.jpg?fit=210%2C94LGTECH NEWSLG,smartphoneThe smartphone is probably the most popular consumer product at the moment, and people around the world are willing to pay to get access to newer and more powerful devices. And while consumer interest definitely exists, the competition with the manufacturers is huge and even giant, as LG - no...Michael K.Michael K.firstname.lastname@example.orgContributorMichael K. is a writer at GizBrain. Hi guys hope you have fun here as much as I do!GizBrain - Your Tech Brain