LG has announced that it is expecting to register an operating profit of $439 million during the tech giant’s most recent quarter. This amount represents a 65.5 percent improvement over the same quarter last year. However, the status of the South Korean company’s mobile division is not yet made clear.
LG also revealed that for the first quarter of this year, its earnings may have taken a dip, decreasing 4.5 percent year over year to $11.7 billion. Still, the expected operating profit would be the company’s best posting in nearly a couple of years, and would signify a second consecutive quarter in which LG posted a profitable three month span. Moreover, the $439 million operating profit easily surpassed earlier profit predictions.
Everybody knows that LG produces all sorts appliances and electronic gadgets, including refrigerators, television sets, and even telecommunications equipment. Its mobile division, however, has had pretty challenging times as of late, especially with the recent slump in the global smartphone market. In the last quarter of 2015, LG posted losses amounting to $36 million for its mobile business, with the company registering an overall net loss of $117 million.
However, in January early this year, LG’s mobile business posted sales of $3.26 billion during the final quarter of 2015, a 12 percent improvement sequently but flat year over year, helped immensely by rejuvenated sales in North American markets. Still, in 2015, LG only captured 4 percent of the global smartphone market, as estimated by IDC.
LG has put high hopes in its newest flagship device, the G5 smartphone, which hit store shelves everywhere beginning last week. The G5 device may be LG’s most innovative smartphone yet. The device comes with a clever modular design that allows it to morph into a virtual reality headset, a 360 degree camera, and a rolling home security apparatus, just to name a few.
LG has not published any official sales numbers for its G5 flagship yet. However, according to the Korean Herald, a reported 15,000 units of the LG G5 smartphone were sold on the device’s first day of availability, in South Korea, the home country of LG. This is pretty remarkable, especially considering that this initial sales figure is three times more than what was managed by last year’s G4, the predecessor of the G5. If the company can somehow replicate this in other major smartphone markets, such as the United States or the United Kingdom, then it has a good chance of registering another profitable quarter three months from now.
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