First-quarter earnings were down from a year ago but were still healthy thanks to a surge in smartphone shipments.
LG Electronics achieved a record number of smartphone shipments for the first quarter of 2013.
The mobile phone maker shipped 10.3 million smartphones for the quarter ended March, its highest level since jumping onto the smartphone bandwagon. Revenues in LG’s mobile business reached 3.21 trillion won ($2.96 billion), a rise of 28.5 percent from the year-ago quarter.
The company attributed the gain in smartphone shipments to healthy sales of its Optimus G and Optimus G Pro phones as well as 3G smartphones such as the Optimus L Series and Nexus 4. LG expects further gains in shipments and sales for the current quarter as it launches its Optimus L Series II, 5.5-inch Full HD Optimus G Pro, and Optimus F Series phones.
LG didn’t fare as well in the TV trade. Sales of LCD TVs rose in Europe and developing markets such as China. But revenues for the home entertainment business fell to $4.77 billion due to lower sales of plasma TVs. LG expects the TV market to remain sluggish but is eyeing better results ahead as it launches new 3D Smart TVs and Ultra HD TVs.
Overall profits for the quarter landed at $20.3 million, a sharp decline from the $221.7 million earned in the same period last year. However, revenues climbed by 6.8 percent to $13.01 billion, thanks mostly to the gains in the mobile phone business.
- LG Electronics’ profit plunges on slow TV sales (cnsnews.com)