Overall LG profits rose 65.5 percent, but its smartphone division faltered just before its latest LG G5 handset arrived on the market.
LG's overall first-quarter profit for 2016 rose 65.5 percent compared to a year ago, but that intriguing rise was at least jarred by a 15.5 percent drop in the company's smartphone revenue and a 12 percent drop in smartphone shipments in the quarter.LG reported an operating profit of $420.25 million (505.2 billion KRW) for Q1 2016, which is a 65.5 percent jump from the $277.45 million (305.2 billion KRW) brought in during the first quarter of 2015.Overall LG revenue for Q1 2016 was down, however, to $11.12 billion (13.36 trillion Korean Won) from the $12.72 billion (13.99 trillion KRW) brought in one year ago, according to the company's financial figures, which were reported April 28.Sales for LG's mobile phone division were disappointing, with revenue of $2.46 billion, (2.96 trillion KRW), which is down 15.5 percent from Q1 2015, according to LG. Smartphone shipments were also down, to 13.5 million units, which is 12 percent lower compared to a year ago and to the fourth quarter of 2015. LG attributed the drops in mobile phone revenue and sales to "a result of the business entering the slow season as well as declining shipments of existing flagship models due to high interest in the recently announced LG G5." The company said it expects that "competition in the smartphone market will continue to increase, leading to further price erosion which LG plans to counter with a strong global push for the modular LG G5 smartphone and new mass-tier models such as its X series." ne year ago. Net income was also down in Q2 to $10.5 billion from $13.6 billion a year ago as sales of the company's flagship iPhone smartphones leveled off ending Apple's enviable 13-year record of uninterrupted sales growth. Apple's latest iPhone 6 models went on sale last September.
- eWeek