Ever since the Apple iPhone and Google’s Android operating system came into existence, Apple and Samsung seem to be the only two companies which are making profits. All other companies which were in the smart phone market, including BlackBerry, HTC, Nokia, HP, Sony, and even LG, are in losses. But now, LG seems to have been picking up the pace. Once the world’s third largest smart phone manufacturer has reported profits again, after a year of heavy losses.
The company has said that it made a total profit of 157.1 billion won ($138.5 million) for the three months ended September 30. This is a huge recovery from the 413.9 billion won ($366 million) loss it faced in the same period, last year. “However, third-quarter revenue fell 4 percent to 12.38 trillion won ($10.93 billion) due to a decline in demand for feature phones,” CNET writes.
“LG’s mobile division recorded a third-quarter profit of 22 billion won ($19.4 million), compared with a 138.8 billion won ($125.8 million) loss a year earlier,” the online publication mentions. The profits have been credited to the demand for LTE based smart phones. In this quarter, the company has sold 14 million smart phones, which is supposed to be a 9 per cent increase compared to the last quarter. Optimus L series of smart phones, in particular, have contributed more to this rise in profits.
The latest smart phones from the South Korean manufacturer, the Optimus G and the Optimus Vu, are expected to elevate this profit more in the present quarter. The company is hoping to give some really good competition to Samsung. On the other hand, another division of the company which competes with the products and services of Samsung and Sony, the home entertainment division, reported an operating profit of 88.6 billion won, which is same as the last year.
CNET says, “LG shares were up 2 percent following the company’s earnings announcement, following a 26 percent run-up during the past quarter on mobile sector optimism.” This is good news for LG shareholders. Are you one of them?