subject: LG shows declined profits in Q3 with LG mobiles in loss [print this page] LG shows declined profits in Q3 with LG mobiles in loss
Astonishing and probably unbearable 99% decrease in profits is recorded by LG Mobiles in its third quarter as compared to the same quarter last year. The apt statement at this point of time for LG to relax is 'its better then loss'. As all know, LG is the king in world of electronics, accounts making it evident, but the decision to step in the mobile world seems not too lucrative for the company. Last year the Korean giant registered a profit of $ 810 million which is now trimmed up to only $7 million.Talking about the Mobile segment of LG, it showed a loss of $ 270 million, surely making it the worst performer of LG businesses. Considering the past three months shipment process there was a decrease of 7% QoQ making it a total of 28.4 million units and the profits fell to 2.64 billion dollars. This will be equal to a 12 percent decrease from Q2 2010.Talking about the Q3 of 2009, it has worst data with the revenues decreasing by 31.9%. The mobile segment thus is showing a real poor performance since a long time. There are various reasons behind the poor performance of Samsung Mobile, most important being the increasing demand of smartphones. Samsung is yet not a competitive candidate in smartphone manufacturing which is simply laying bad effects on the companies profits. The company is yet not much adaptable to latest technology and hence need to go through real hard work on research and development.At present, Samsung has two major products in its basket Optimus and Optimus 7, these hand sets are expected to lay some good amount of profits for the company. The company is expected to increase the mobile shipment by 13% in the 4th quater. With that it is still unmoved on the world's third largest manufacturer in World.Press Release:"The company's increased profitability in the third quarter was driven by the strong performance of its Semiconductor Business, which recorded an operating profit of 3.42 trillion won (3.0 billion U.S. dollars)," Samsung said.
