Printed from http://www.electronista.com

LG profit collapses based on shrinking phone sales

updated 12:00 pm EDT, Thu October 28, 2010

LG phone sales drop 10pc in summer 2010

LG saw its profit fall apart today as its summer results were hurt by its weakness in phones. Its profit plunged 99 percent, down from $805.6 million a year ago to $6.7 million. The Korean company was dragged down by its mobile group, which had a record loss of $270 million. The company's total phone shipments also dropped, going down 10 percent from year to year at 28.4 million.

Officials from the company mostly blamed its weakness in smartphones. Along with falling sales, the average price of one of its phones declined over the period, hinting that more of its sales skewed towards basic designs.

CFO David Jung hoped for a bounce back in the fall with phones based on the Optimus One, such as the Optimus S for Sprint and Optimus T for T-Mobile. About three million could ship worldwide by the end of the year and would be helped by the first Windows Phone 7 devices, focusing on Optimus 7 family phones like the third-largest phone designer overall, but its decline is likely to widen the gap with Samsung, whose recent success with Android has kept it afloat. It also narrows the gap with far faster-moving companies like Apple and RIM that should now be among the top phone designers.



By Electronista Staff
toggle

Comments

  1. Eldernorm

    Fresh-Faced Recruit

    Joined: Sep 2007

    +2

    A funny thing happened on the way to...

    "..... hoped for a bounce back in the fall with phones based on the Optimus One,...

    ..... but its decline is likely to widen the gap with Samsung, .....whose recent success with Android has kept it afloat."

    I guess LG and Samsung is having a great success with leading market share Android phones... :-)

    Maybe market share is better than actual profit... ??? :-)

    Just a thought,

    en

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Asus Chromebook C300

When Chromebooks hit the market back in 2011, consumers didn't know what to do with them. The low-cost laptops, powered by Google's Ch ...

Plantronics BackBeat Pro Bluetooth headphones

Looking for a pair of headphones that can do everything a user requires is a task that can take some study. Trying to decide on in-ear ...

Lemur BlueDriver

"Oh no, the check engine light is on…again! What one of the hundreds of reasons could it be this time? Probably going to cost a fort ...

Sponsor

toggle

Most Commented

 
toggle

Popular News