LG has released its earnings report for the second quarter of 2015, and it’s a snap-shot of how competitive the smartphone market has become. LG’s Mobile Communications Company brought in $3.33 billion for the period, showing a small increase of 1% and generating a modest profit of just $200,000.
Despite shipping 3% fewer smartphones globally, LG managed to increase its year-on-year revenues earned in North America by 36%. The increased earnings were mostly down to selling more mid-range smartphones and devices, a trend that is likely to continue with the release of devices such as the Bello II. In its home country, Korea, sales of its premium handsets were affected by weak demand, although LG managed to sell its highest number of LTE-equipped phones worldwide, coming in at 8.1 million units. It should probably be noted that the G4 has only been on sale for around two months, so it may have a greater impact on this 3rd quarter. LG is also planning on releasing another premium handset closer to the final quarter of 2015, which could give its figures a nice little boost before 2016.
LG’s Home Entertainment division had a disappointing second quarter of 2015, reporting a 22.7 percent fall in sales. LG says that this is down to ‘soft’ demand for LCD televisions, but it is optimistic about the demand for its 4K OLED TV’s, with plans to release fresh designs that are priced more aggressively.
Luckily, its Home Appliance division achieved a 10 percent increase over the previous quarter with an operating profit of $266 million.
Overall, LG’s second-quarter sales were down 7.6 percent, with a net profit of just $206.38 billion from $12.69 billion worth of sales.
Source: LG
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