LG Mobile reports poor Q3 results, LGE still holding strong

28 October, 2010

The third quarter of the financial year wasn't particularly successful for the second largest Korean conglomerate. The profit they recorded stands at just over the measly 7 million US dollars, which is a 99-percent decrease as compared to the 810 million they scored in the same quarter last year. Still any profit is better than loss so it's not all bad.

Unfortunately, the same cannot be said for the Mobile division which lost some 270 million dollars, which makes it the worst performer of all LG businesses. Over the past three months shipments were down by 7% QoQ to a total of 28.4 million units and revenue fell to 2.64 billion dollars, which is nearly 12 percent down from Q2 2010.

The results look even worse when compared to Q3 of 2009 with the revenue slipping by 31.9 percent. LG quotes the weak demand in Europe and the continuous increase in smartphone demand (where they cannot compete quite well recently) as the reasons for their recent troubles. The reduction of the average selling price of their devices, due to poor performance in developed markets and investments in R&D (let's hope that pays off) are also mentioned.

The LG mobile division still expects to achieve "high single digit growth" in Q4, staking a lot on the Optimus One and Optimus 7 baskets. New entry level touch-driven phones are also expected.

However LG expect mobile phone shipments to increase by 13 percent in the holiday quarter of this year so they obviously expect to lose some further market share. Their place as the world's third largest manufacturer is safe for now though.

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Reader comments

  • sam

As an owner of Optimus 3d, I have to say this: LG - life is NOT GOOD, when it comes to you mobile phone user experience. Extremely poor show. Poor update process no OTA updates, bad experience (take a hint from HTC or Samsung Mobile) the software and...

  • Anonymous

LG: Poor customer service; poor workmanship; broken promises when it comes to release dates for phones; poor on releasing software updates; LG does not listen to customers (example, customers in some countries want an An...

  • Nen

Bad software (ROM) support for mobile device (ex: LG KS20, ...) results this, I think. They can sell many devices in a year then lost many client next year cause of support ... I replaced my LG smart phone by Samsung Galaxy S. I hope Samsung will n...