LG Posts Healthy Q2 2014 Profit; Buoyed by Smartphone Success

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It wasn’t long ago that Samsung was the proverbial king-of-the-hill when it came to selling Android phones, with Sony, HTC and LG losing money while fighting over the scraps from Samsung’s table. It would appear that the old adage of “What goes up must come down” applies to Samsung who has recently announced a substantial slowdown in sales of their devices, with the plucky LG having picked up their game, seeing their Mobile Division grow from strength to strength.

How much has LG improved? Well, after 3 consecutive quarters that saw the Mobile Division lose money, the second quarter of 2014 see’s LG managing an increase of 16% over the same period last year, helping it achieve sales of KRW 3.62 trillion ($3.51 billion). An operating profit of KRZ 85.9 billion ($83.4 million) was posted, and while it’s not a humongous profit, it’s a start, and a distinct sign that LG are on the right track. You can find out just how many handsets LG sold right here.

LG’s change in fortunes can be attributed in part to its well-regarded G3 flagship, as well as strong sales of its L Series of mid-range handsets. Sales should carry on seeing growth, with the G3 still in the process of becoming globally available. The remainder of the year should see LG release other variants of the G3, along with the so-called ‘Prime’ version.

In it’s entirety, LG announced an increase of 165% increase in net-profit for the second quarter in 2014 over the same time period in 2013. As well as the mobile division posting strong results, LG’s Home Entertainment Division also performed strongly, seeing a 3% increase  compared to the same time last year, benefiting from a better product mix and lower fixed costs, resulting in operating profit increasing by 64.9% to KRW 154.5 billion ($150 million).

It’s a good sign, seeing a company other than Samsung post a profit for sales of Android phones. And although Samsung won’t be pleased about it’s local rival gaining market share and posting profits, it can only be beneficial for consumers with the ‘friendly’ competition helping to drive innovation, and ensure that no one gets complacent. And to think that LG’s turn-a-round began with the release of the Nexus 4, followed by the Nexus 5 and G2 handsets. It shows the immense value of the Nexus program to handset manufacturers.

Seeing as LG are becoming more popular, it makes sense to ask if you’ve recently switched allegiances to LG? Have you purchased a G3 yet? Let us know in the comments or at our Google Plus page.