LG announced the financial results for Q1 of 2010. They have experienced a sales decline in North America, which they attribute to an increased demand for smartphones, but they have performed better in other regions.
Overall shipments fell 20% from the previous quarter (which is to be expected, considering the previous quarter was marked by the holiday season), but on a year on year basis, shipments grew by about 20% to 27.1 million units.
Despite increased shipments though, profits fell both quarter on quarter (20%) and year on year (19.7%). This is in part due to a low operating profit of 0.7% in contrast to 5.6% for last year's first quarter.
In Q1 of 2010, the handset department has sales of 3,140 billion won (2 816 million US dollars) and operating profit of 28 billion won (25.1 million US dollars).
LG are keeping their chins up though and they've got big plans for the next quarter - a 5% growth in shipments compared to Q2 of 2009 and a "double digit" growth compared to this quarter. They also plan to bump up the profitability with new products and an emphasis on smartphones.
The big winners for Q2 are expected to be the LG GT540 Optimus, the LG VS740 (another Android, the LG LU2300 most likely) and the LG Cookie2 (from the report it isn't quite clear which of the multitude of Cookies it is).
No comments:
Post a Comment