Things may be starting to brighten for Samsung, but for other Android phone makers out there, the struggles still continue. One of them is LG, which just revealed that for third quarter of this year, it posted a 37 percent drop in profits year over year, due to the lackluster sales of its smartphone division.
LG reported a net income of $109.3 million, which is not improvement over the $177.5 million it posted during the third quarter of last year. If it is any consolation to LG, it is not the only name in the mobile industry experiencing some hard times. Other mobile manufacturers like HTC and Sony are trying to get through each quarter without posting net losses or decreases in profits, at the same time, striving to ward off threats from Chinese phone maker upstarts, such as Huawei and Xiaomi, who are now crowding the midrange smartphone market with feature heavy devices with affordable prices. Just this week, Sony revealed that it suffered a 15.2 percent drop in smartphone sales compared to the previous year.
As for LG’s mobile division, its revenue saw a significant drop of 21 percent compared to one year ago. LG did manage to ship 14.9 million units of its smartphone devices during the third quarter of this year, but as compared to the same period’s numbers one year ago, that represents a drop of 11 percent.
Although LG managed to improve its sales in the United States market, interestingly its sales performance in its home country, South Korea, is declining. LG attributes this to the continuous weaker demand among South Korean mobile users. The company, however, is trying to reverse this during the final quarter of 2015 with the launch of its new V10 smartphone (officially introduced nearly a month ago, along with the Watch Urbane Second Edition wearable device), as well as the release of the Nexus 5X, one of the two new Nexus phones unveiled by Google this year.
Still, despite its troubles in its mobile division, smartphones is just one part of LG’s very wide range of products. The company can safely say that in its other divisions, it is actually faring quite well. In terms of sales of home appliances and TVs, the South Korean tech giant did surpass market expectations -- it was supposed to report an operating profit of about $233.8 million, but revealed that the actual number is about $258.3 million.
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