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.
Grizzled Veteran
Joined: Oct 1999
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.