LG Electronics has reported revenues of 13.2 trillion won (US$ 11.8 billion) in Q3 that ended September 30, 2016, which is down 5.7% compared to the same quarter last year with operating profit of 283.2 billion won (US$ 252.7 million), down 10.8% from the same period the previous year. Home Appliance & Air Solution business and Home Entertainment posted good performance, which offset sales declines and operating losses from Mobile Communications.
Mobile Communications sector reported a quarterly revenue of 2.52 trillion won (US$ 2.3 billion), which fell 24% QoQ and 23% YoY. The sector posted a operating loss of 436.4 billion won (US$ 389.4 million), compared to loss of KRW 96.3 billion a year ago. This is mainly due to weak performance of premium products such as weak sales of G5, expenses associated with business improvement activities and ASP decline of smartphones.
The company shipped 13.5 million smartphones in the quarter, down 9% year-on-year and 3% quarter-on-quarter. Mobile phone sales declined 41% QoQ in the domestic market, but it inclined 14% QoQ in the North America Market. Mass tier sales were up 16% QoQ driven by K/X series.
LG expects tough competition among smartphone makers next quarter. It will focus on maximizing the sales of V20, which is says is gaining
positive responses and extending the turn-over of new
mass-tier smartphones, which are garnering popularity.
LG also said that it will finalize business improvement activities
by Q4, thereby ensuring fundamentals enhancement onwards
and bracing for future business in the mobile division.