LG ships record 12 million smartphones during Q2
South Korean electronics company reports $13.6 billion in revenue, a 10 percent increase year over year, on strong sales in its mobile, entertainment, and home appliance units.
LG Electronics announced Wednesday that it shipped 12.1 million smartphones during its second quarter, a record for the electronics maker.
The electronics maker recorded 15.23 trillion Korean won ($13.6 billion) in revenue for the three-month period ended June 30, a 10.1 percent increase over the same period last year, on strong sales in most of LG's business units. The company's $426.9 million operating profit was up 40 percent year over year, while its $139 million net profit was up slightly compared with the second quarter of 2012. Both increased from the previous quarter.
The South Korean company's mobile unit notched revenue of $2.78 billion, up 34.5 percent from the same period a year earlier. The unit's operating profit increased year-over-year to $54.3 million but declined compared with the previous quarter on weaker demand on its home turf, lower average selling prices, and higher marketing investments.
The company expects sales growth to be boosted by L-Series II and F-Series smartphones, while high-end models such as the such as G Pro and LG G2 are expected to improve LG's competitive profile. LG is expected to unveil the G2 flagship smartphone at a press event in New York on August 1.
The company's home entertainment unit recorded revenue of $4.9 billion, up 6.4 percent over the previous quarter but flat year over year on increased competition and lower demand. On continued global market weakness, the company plans to focus on expansion into Ultra HD TV and OLED TV markets.
LG's home appliance unit tallied record quarterly revenue of $2.8 billion, a 10.9 percent increase year over year on strong sales in the United States and China. Meanwhile, the company's air conditioning and energy solutions unit also reported record revenue of $1.5 billion, and 18.4 percent increase over the second quarter of 2012 and a 42.5 percent increase over the previous quarter.