LG profits slump on weak smartphone and TV demand

29 Jul 2015250 Views

It was a tough Q2 for LG but the Korean tech giant is predicting a buoyant Q3.

Korean technology giant LG reported a 60pc drop in profits due to weakening sales of smartphones and TVs.

The company’s Q2 operating profit fell to 244bn won (US$211m) from 610bn won a year ago.

Revenues were up 1pc to 3.65trn won (US$3.3bn).

The company described the global TV market as sluggish and intensely competitive. However, it said it was confident that it can recover lost ground in the third quarter with new products and more effective marketing.

The company expects the market to improve, and plans to expand its OLED line in the premium 4K Ultra HD market.

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LG’s smartphone sales fell 3pc on last year, despite a 36pc surge in sales in North America due to increased demand for mid-range smartphones and tablets.

However, overall profitability was hurt by weaker demand in the premium segment of the domestic Korean market.

LG sold more than 8.1 million LTE smartphones worldwide in the quarter, its highest reach ever.

LG image via Shutterstock

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years

editorial@siliconrepublic.com