LG has released the results of its third quarter financials for the year 2014, and it looks like the company's most recent quarter was not a bad one.
The LG Mobile Communications Company (LG's mobile segment) was able to ship a record-breaking 16.8 million smartphones in the third quarter. That sales figure is a whopping 39 percent improvement (year-on-year), and 16 percent more than the number of smartphones LG sold in the second quarter.
In terms of revenues, that equates to $4.14 trillion in total sales, the highest LG has generated since back in the third quarter of the year 2009. And that is not all -- the company also managed to get an operating income of $163.16 billion, its highest in five years.
The company credits the success of the LG G3 smartphone, its flagship device, in bolstering sales figures. Of course, it is not just the phone maker's G series of smartphones that are selling fast. Its cheaper L series are also doing good. It seems that the combination of premium G phones and the budget-friendly L phones is working pretty well for the phone maker, at least in the third quarter of this year.
As for competitor and fellow South Korean phone maker Samsung, things could be better. Samsung is expected to announce its third quarter results within the week. But LG's rival has reportedly advised its investors not to expect stellar sales figures for the recently ended quarter. But with the release of the Galaxy Note 4, Samsung is looking to bounce back by year's end.
LG is considered the third largest phone maker in the world right now. With its strong sales during the last quarter, the company is poised to finish the year with a solid overall performance.
But that remains easier said than done. LG is not only competing with Samsung, but also with the increasing threat posed by Chinese phone makers. Indeed, in the last few years, Chinese mobile manufacturers like Lenovo and Huawei have captured some of the market share previously held by other high-profile phone makers.
If LG is to remain competitive, it will need to sustain its success in the field of smartphones. Among the company's businesses, its mobile segment is its biggest contributor in terms of revenues. As a matter of fact, sales of its mobile devices currently account for 36 percent of the company's total earnings.
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