In a time where Samsung is struggling to combat lower sales – brought on by a number of factors such as less than innovative designs, market saturation, the onslaught of Chinese smartphones and Apple invading its phablet world – LG's mobile sales division are setting record numbers. In fact, mobile sales helped guide the company to a 7.4-percent year-over-year third quarter revenues and an increase in profits of more than double during the same period last year.
In an unaudited consolidated third quarter revenues statement, the LG Mobile Communications Company (division) saw record-breaking sales of smartphones to the tune of 16.8 million units during the third quarter – a 39-percent increase during the same period last year and a 16-percent increase over the previous quarter. Sales of $4.14 billion and operating income of $163.16 million were the highest in the company's history since the third quarter of 2009! This is two consecutive profitable quarters for LG Mobile and they expect these figures to grow on the strength of its G Series and L Series models, even with the more competitive mobile landscape.
Overall, the company thrived due to its Mobile Communications group, but some of its other companies, or divisions, were not quite as lucky. The LG Home Entertainment area saw a slight decline of 3-percent in revenues, but an increase of 5-percent in operating profits due to a better sales mix. Sales of LCD TV's increased in North America, Europe, Asia and the Middle East and they expect sales of 4K Ultra HD TVs to grow while monitors and AV equipment slow down.
The LG Home Appliance group saw a slight decrease from the same period last year, despite improved sales in Korea, Europe and emerging areas such as the Middle East and South East Asia. Some of it was blamed on greater competition in North America and unfavorable exchange rates, although LG expects an improved fourth quarter as they expand their home appliances portfolio and go forward with an improved cost structure. The LG Air Conditioning and Energy Solutions area saw a 5-percent decline in revenues and consequently an operating loss…some of which was brought on due to a weak demand for residential air conditioners in Korea due to weather conditions. LG expects to see overseas sales increase due to higher energy efficient designs and going after more products that are commercial oriented. Please let us know on our Google+ Page if you were one of the many that helped LG this year by purchasing their products…as always, we would love to hear from you.