In the second quarter of last year, LG had shipped a then record volume of 14.5 million smartphones across the globe. But fast forwarding a year later, it appears that the South Korean phone maker did not fare as well.
LG just published its financials for the second quarter of 2015. The company itself was quick to note that its numbers for the period were modest by their standards, but at least the mobile manufacturer fared better than Taiwanese phone maker HTC, which posted a losing quarter for the second quarter of this year.
LG truly had a pretty good year in 2014, shipping a total of 59 million units of its smartphones while managing to increase its profits two fold. But for 2015, it remains to be seen if the company can match its numbers last year. During the second quarter of 2015, the phone maker shipped 14.1 million units of smartphones, which represents a 3 percent decrease compared to last year’s second quarter numbers (14.5 million units). This volume also equates to revenues of $3.33 billion, which represents only a 1 percent increase year on year. For comparison, the company shipped 15.5 million units in the fourth quarter of 2014, and 15.4 million units in the first quarter of 2015.
LG is admitting that its less than stellar figures for the second quarter of the year may be due to slowing demand for premium handsets. Still, the phone maker increased its sales in the North American market by more than one third, courtesy of the strong sales of its midrange smartphones (of the total smartphones LG sold during the quarter, a record 8.1 million were LTE handsets) and tablets.
Perhaps sensing that is has a better chance of selling smartphones in the midrange category, LG has cleverly complemented its flagship device, the G4, with less pricey options, such as the G4 Beat, the G4 Stylus and the G4c, and the Bello II (launched in emerging 3G markets).
As for LG’s total revenues (covering smartphones and other electronic devices), it dropped 7.6 percent year on year. However, its mobile division has done remarkably well compared to its other business units. For instance, LG’s home entertainment division has definitely struggled during the second quarter of 2015. Its home appliance business is faring better though, posting a 10 percent increase in sales quarter on quarter. Its vehicle division also saw an 18 percent increase compared to the previous quarter, racking up a revenue of $411 million. Overall, LG has posted a profit of $206 million. It is meager by any measure, but at least it is a positive bottom line.
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