LG only made 1.2 cents per phone sold last quarter
The smartphone market is extremely competitive today, with tons of manufacturers entering the market with their own unique devices. LG just released its earnings report for the past quarter, and the results are pretty mixed. LG Mobile shipped 8.1 million LTE smartphones, and this was their highest number. Note that the number shipped does not mean the number of phones sold, so this could be partly to blame for the disappointing profit.
LG had a operating profit of only 200 million won or $172,000 from smartphones. This is shockingly low, and means that the manufacturer only made 1.2 cents per phone sold. Interestingly, although LG has a lot of competition from a number of different smartphone makers, the company specifically cited Apple's iPhone sales as a huge blow to the mobile division's earnings. The LG Home Entertainment division also reported disappointing numbers, with revenue dropping by about 22.7%, stating that demand for TVs has not been very strong.
Things may only get tougher for LG as the year continues. With Motorola just announcing new smartphones on Tuesday, and the expectation that Apple will release new mobile devices in the fall, the company really needs to set itself apart from the other Android manufacturers in order to better compete. Smaller Android phone makers like OnePlus are also going to provide fierce competition, aiming to sell premium quality smartphones at affordable prices.
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