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.
LG has decided to reduce its bloated mobile phone lineup by half to around 70 from last year’s 145.
It plans to release 20 sets of smartphones this year with 15 models being Android phones.
He said that 4.2 million phones will be Android-based, while 1.8 million will use Microsoft’s Windows Mobile operating system, the executive said.
via LG jacks up smartphone sales target to 6 mil.
LG’s already thin margins were wiped out last quarter.
As of the end of the second quarter, Samsung’s global smartphone share was 4.8 percent, according to IDC. But LG’s presence was negligible.
[Update] From early 2009,
LG, the third-biggest phone maker, will produce about 50 models that run Windows over the next five years, said Scott Rockfeld, a director in Microsoft’s mobile business. Seoul-based LG will use the software as its primary program for smart phones, devices that can send e-mail and browse the Web.
Microsoft Signs LG Phone Deal, Updates Windows Mobile (Update1) – Bloomberg.
Why does Microsoft and LG keep talking about how many phone models they will launch? Since when does a large portfolio make up for poor products?
Losses from mobile phones totaled 120 billion won ($101 million) in the second quarter, compared with profit of 620 billion won a year earlier, Seoul-based LG said in a statement today. The loss, the division’s first in four years, was triple the size projected by the average estimate of five analysts surveyed by Bloomberg.
via LG Posts Record Handset Loss on IPhone, Smartphones – BusinessWeek.
First quarter market share ranking of top mobile phone vendors according to Strategy Analytics:
- Nokia, 107.8 million
- Samsung, 64.3
- LG, 27.1
- RIM, 10.6
- Sony Ericsson, 10.5
- Apple 8.75
- Motorola, 8.5
These numbers are shipments or sell-in, which may differ from sell-through or end-user purchases.
RIM breaks into top 5 in surging phone market | Reuters.