With their G2 handset receiving rave reviews, it seems only appropriate that LG's Mobile Communications Company has led the way in terms of increased profits, according to the unaudited Q3 2013 financial results report released today.
LG's Mobile Communications Company has seen a growth in revenue of 24%, bringing in KRW 3.05 trillion (US$2.75 billion) worth of sales. But despite shipping 12 million smartphones in the third quarter, profits and selling price were hit by higher marketing costs and increased competition by its rivals.
LG have pinned their hopes upon the release of their flagship phone, the G2, to boost sales as we enter the peak holiday selling season, with their vast selection of 3G and mid-range phones shoring up the lower end of the market. With LG planning to focus on the release of new premium products, as well as re-entering the tablet market with the release of the G Pad 8.3, which has also been highly praised for both its premium quality and for reasonable pricing, it would appear that LG's Mobile division intends to build upon its recent success, providing sterner competition to local rival Samsung.
One of LG's future products is the Flex, which is their first smartphone featuring a flexible display. The LG Flex, which had hands-on pictures leaked yesterday, reportedly features a 6-inch Full HD curved display along with same rear-sided button configuration as the G2. LG have previously confirmed that flexible displays are in full production, and plan on releasing the Flex on a wide scale. This is LG attempting to one-up its rival Samsung who are restricting their own smartphone with a flexible display, the Galaxy Round, to a small-scale release in their home market.
LG's other divisions didn't perform up to the same standard as their Mobile division; with stagnating sales or in the case of LG's Home Entertainment Company, reporting a 7 percent decline in sales when compared to the same period a year ago. The dip in sales is blamed on lower prices as well as slower global demand, which LG plans to redress by expanding sales of its premium OLED and Ultra HD TV units.
With LG showing a substantial growth in sales and profits for its mobile division, it can only be good for the consumer to have better choices in premium handsets. But for LG's rivals, it should spark a small element of fear in that yet another Korean tech giant is winning market share through innovative designs and high-end specifications. HTC, I'm looking at you.