Smartphone Sales Boosts LG's Quarterly Profit
The company faced tough competition from Apple's iPhone and Samsung's Galaxy S3.
Despite facing intense competition from the likes of Samsung's flagship Galaxy S3 and Apple's iPhone, South Korean electronics firm LG has announced a third quarter profit after shipping a record amount of smartphones.
LG posted a net profit of $138 million for the three months ended in September. The figure represents a jump of 59 percent when compared to the same period last year, when it reported a loss of $366 million.
LG's mobile division in particular has experienced the most growth, with it posting a $19 million profit compared to a $126 million loss in 2011. Cumulatively, LG has managed to ship more than 14 million handsets.
"Today's results show that it doesn't have to be Apple or Samsung to make profits in smartphones", said Hong Sung-ho, an analyst at I'm Investment & Securities. "LG won't be able to earn double digit profit margin in handsets as Apple and Samsung do. Still, LG proved it has the potential to stand out among its second-tier peers of Huawei, ZTE, Motorola etc, with its manufacturing competitiveness."
LG will reportedly unveil Google's next Nexus smartphone on October 29.