LG profits up, mobile profits down

LG profits up, mobile profits downWell, there's a bit of good news and bad news for LG!

The good news is that its profits are up. In fact, they appear to have soared in the second quarter of this year, reaching a a very respectable 159 billion won (that's £89 billion to you and I). But the bad news is that's not from the company's mobile business which it is desperately still flogging away at, trying to encourage growth.

Most of the cash came from the company's massive other arms - which dwarf the mobile segment. Areas like home entertainment systems, electronic appliances and air conditioning systems put it in an extremely strong position, leading profits to rise by some 46%.

Not only did the mobile arm perform dismally, it was actually in negative territory with revenues falling 28.5% year on year. The mobile division made an operating loss of $49m. The company attributes that to marketing expenses for items like the Optimus 4X HD.

Yeah, we thought the same thing. WHAT marketing expenses?

It feels to us like we've seen very little in terms of advertising for the Optimus 4X HD, compared to, say, the Galaxy S3. Which is a real shame because it's not a bad handset at all (stay tuned for our review which will appear here in the next few days).

But LG seems to have just given up the ghost with it. Either that, or it's imaging some kind of magic will propel it to the top of the sales charts. Or even worse, that the company is arrogant enough to think people will just flock to buy it based on reviews online.

Via Reuters

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3 comments

JanSt / MOD  Jul. 26, 2012 at 10:44

I haven't seen an LG phone 'in the wild' since.... hm... Well, actually, now and again someone
with the original Viewty works in the local Gamestop

matt101101 / MOD  Jul. 26, 2012 at 10:57

You can get the 4X for sub-£400 from Amazon.de...that's for a phone that I don't think is even out in the UK yet. Me thinks its not selling too well...

socialjeebus  Jul. 26, 2012 at 15:07

The new Optimus LTE 2 is selling pretty well here in Korea, they definitely benefited from the late release of the Korean version of the SGS3 (though you could get the regular SGS3). Pretty decent phone too (got given one). The phones are decent even if some of the ideas are just **** (3D).

Their saving grace is their 4G LTE patent suite and their relative 'success' in Korea and Southeast Asia.

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