LG has some good news for investors, in a conference call, the South Korean firm announced almost triple profits in the mobile sector and a record quarter, selling 14.5 million smartphones.
Some of the success has to do with Samsung’s slump this year, after the Galaxy S5 failed to achieve the same greatness as the Galaxy S3 and S4. In South Korea, reports said LG was outselling Samsung’s flagship 3/1.
The 14.5 million smartphone sales in one quarter come from the LG G3 and other mid-range smartphones. The company has not invested a lot in low-end smartphones, a market covered by Samsung, Nokia and other manufacturers.
This does give LG more profit per customers, most mid-range and high-end phones have bigger profit margins per customers than low-end, but this comes back around when LG needs to spend money on advertising and R&D to make the LG G3 successful.
LG mobile division brought in $3.5 billion this quarter and finally put an end to three straight quarter losses. They are one of the few smartphone makers currently in the green, with HTC and Sony both failing to make a profit in mobile.
The LG G3 is a great device, we are pleased to see for once the market is not going straight for the Galaxy phone, but instead looking to LG. It should be pointed out that LG beefed up their marketing this year, getting more eyes of the new phone.
LG is looking to make further developments in the mobile industry, they announced the LG G Watch running Android Wear and are expected to launch a Windows Phone device sometime this year, alongside Samsung and HTC.