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LG mobile loss more than doubles, may see Apple pass by

updated 10:20 am EDT, Wed October 26, 2011

LG Q3 shows Android not enough to stem losses

LG in its summer results saw its mobile group worsen despite its shift to higher-end Android models. The group lost $128.47 million, more than twice what it had lost in the spring. It didn't say what had triggered the shortfall or how many phones it had shipped, although it has regularly seen its basic phone sales drop faster than it can compensate with smartphones.

The slump came in spite of shipping the Optimus 3D. Most of its hope for the fall is being pinned on the Optimus LTE, a rival to the Galaxy Nexus with a 720p screen, a dual-core chip, and 4G.

The company was dragged down as a whole by its phone problems. It made four percent fewer revenue than last year at $11.92 billion, and its net losses widened to $382.62 million. Along with its phone trouble, net expenses and a loss on investments were to blame.

Most of its upside came from energy, which made $920 million in profit, and a surprise help from TVs. In spite of a saturated market, it made $93.35 million as more people skewed towards its higher-end 3D and LED-lit 2D sets.

The firm's cellphone drop might raise the possibility of LG being overtaken by Apple. It has already been losing share rapidly. Apple saw its own drop to 17.07 million iPhones as buyers waited for the iPhone 4S, but it saw a milder dip than it forecast where LG's situation has exacerbated.




by MacNN Staff

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Comments

  1. Feathers

    Joined: Dec 1969

    -3

    Meaningless

    Profits and losses are shifted around between groups and divisions to minimize tax exposure. I'd be curious to now how much LG have made across all their interests.

  1. Mr. Strat

    Joined: Dec 1969

    +3

    Good news

    After the pitiful job they did with seemingly no QC on the G2X, they deserve to go Tango Uniform. Since LG used to be known as GoldStar, that should tell you where they're at with regard to quality whether it's a microwave oven or a cell phone.

    They make cheap, crappy stuff.

  1. SockRolid

    Joined: Dec 1969

    +4

    Time for a change

    LG in its summer results saw its mobile group worsen despite its shift to higher-end Android models.

    So there's no profit in low-end Android models. And no profit in high-end Android models.

    Time to switch to WP7, eh LG? (Oh, and how are those Android tablets selling? Yeah, thought so.)

  1. BigMac2

    Joined: Dec 1969

    +1

    Girls Marketing

    I wonder when asian corp will learn that using product holders girls to sell technology just doesn't work. It barely work for selling beers, sport cars and game show like Price is Right.

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