LG continues to lose money in mobile phones

LG saw its profit fall apart today as its summer results were hurt by its weakness in phones. Its profit plunged 99 percent, down from $805.6 million a year ago to $6.7 million. The Korean company was dragged down by its mobile group, which had a record loss of $270 million. The company’s total phone shipments also dropped, going down 10 percent from year to year at 28.4 million.

via LG profit collapses based on shrinking phone sales | Electronista.

Q3 numbers show that LG had a drop in ASP as well. The unit numbers are down sequentially from 30.6 million in Q2.

  • Alexkhan2000

    Apparently, LG has some serious internal management issues besides external competitive pressures. Samsung also seems to be eating LG's lunch across all of the product lines that both offer – TV sets, memory chips, flat screen displays, and various home appliances, etc. Samsung is a consumer electronics juggernaut right now and leaving the likes of Sony, Panasonic, Hitachi, Toshiba in the dust as well as LG. On the CE hardware side of things, Samsung will present the most formidable challenge to Apple.

  • In the newly recast definition of Apple vs Google as interdependent vs modular, instead of integrated vs fragmented, we see the results of modular: an inferior product that drives OEM's to cut prices, truly a race to the bottom! We see it in Motorola's measly $3M profit on 3.8 million phones, 79 cents/phone!

    • kwyjibo

      As opposed to Motorola's failed "interdependent" strategy which made losses. I'm pretty sure some of the "modular" companies would settle for being the next HP.

  • WaltFrench

    Hey, businesses don't exist without profits. But as a customer, I'm happy to buy from the lower-profit producer whenever I'm able to tell that I'm getting what I want for less.