LG's "Life's Good" slogan has never seemed to fit so well as now, as the company announced record smartphone shipments and a 165 percent increase in net profit.
The company has posted its second quarter financial report and the figures are definitely impressive: LG saw a 165 percent net profit increase to $399.8 million, largely due to record smartphone sales.
Compared to the same period last year, LG saw a 20 percent increase in smartphone shipments, with 14.5 million smartphones shipped. Sales are up by 16 percent compared to last year, amounting to net of $3.51 billion. According to the company, this is its best performance since the first quarter of 2010. LG further mentions that a third of those shipments consists of LTE-enabled devices, proving once more that the tech's popularity continues to soar.
"The mobile division's operating profit of KRW 85.9 billion (USD 83.4 million) in the second quarter put an end to three consecutive quarters of losses. Much of the success was due to the initial popularity of the LG G3 in the Korean market and strong sales of L Series III smartphones," reveals the company. "LG plans to continue its global rollout of the LG G3 and introduce more mass tier products in the second half, including variations of the LG G3, such as the recently announced G3 Beat, and additional L Series models."
LG's home entertainment business, i.e. its TVs, saw good performance as well. Although this division didn't drive any huge profits, it was nonetheless stable and didn't incur any losses either. LG reported a revenue increase of 3 percent over last quarter to $4.94 billion, which is virtually the same performance compared to last year. This sector reportedly owes its stability to Ultra HD TVs and Business to Business (B2B) deals.
On the other hand, LG didn't do so well in the home appliances and air conditioning departments. The company saw an increase in appliances sales compared to last year, but its $2.94 billion revenue was actually 5 percent lower than last years. Humidifiers and air conditioners drew slightly lower revenues as well, but LG believes that both businesses will get back on track soon with the upcoming range of new products for the first half of this year.
