LG reports Q3 2013 earnings, net profit down despite 12 million smartphone shipments


LG Electronics has announced their earnings for Q2 2013. They have reported net profit of 109 billion Won (US$ 109 million) with operating profits of 217.80 billion Won (US$ 196.34 million). Even though the mobile communications sector earned revenues of 3.05 trillion Korean Won (US$ 2.75 billion), a 24% increase YoY, the operating profit is down by 80 billion Won (US$ 75.7 million) mainly due the marketing for the G2 says the company. LG shipped 12 million units of mobile phones in Q3 2013, which is slightly less than last quarter.

LG believes that the  average selling price were affected by increased competition and higher marketing investments. LTE smartphone sales is up by 31% QoQ due to the G2 launch, and it plans to increase sales in the premium segment with the global roll out of G2 in this quarter. It also aims to increase the sales of both Mass LTE and 3G smartphones during holiday period.

Author: Srivatsan Sridhar

Srivatsan Sridhar is a Mobile Technology Enthusiast who is passionate about Mobile phones and Mobile apps. He uses the phones he reviews as his main phone. You can follow him on Twitter and Instagram