LG Smartphone Shipments Slip To 14.1M In Q2

LG has reported a modest rise in smartphone profits as it battles with what it called an “extremely challenging environment”.

According to Reuters, LG’s profits were well below analysts’ estimate of KRW 395bn ($340m).

The company pulled in 12.69 billion across all its businesses last quarter, which is a 7.6% decline year-on-year but close to the same compared to what they did the previous quarter. That’s left LG’s mobile unit with an operating profit for the quarter of KRW 0.2bn.

In total, LG sold 14.1 million smartphones in the June quarter, registering revenue of 3.65 trillion won, or around $3.33 billion. Revenues derived from the North America market increased by 36 per cent over the past year due to better performance from the company’s mid-range smartphones. LG said market conditions were more hard than expected, but it hopes to recover the lost ground in Q3 with new products and more effective marketing.

LG will aggressively implement its dual strategy focusing on both premium devices as well as mid-range smartphones targeting emerging markets.

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 Korean company was eclipsed by Chinese rivals Xiaomi, which shipped 17.9 million smartphones in the period, and Lenovo, which shipped 16.2 million.