LG handset business posts profit, breaks losing streak
LG’s handset business has finally reported profit after six quarters of loss. According to earnings announcement today, company handset business posted 9.9 billion won ($8.8 million) in operating profit in October-December quarter.
This overhaul can be attributed to LG Optimus LTE, which has seen decent success, and company has sold over a million units of the smartphone since the debut in October. LG shipped 17.7 million mobile phones in the last quarter, which is almost 4 million lower than preceding quarter, mainly because company is removing low-profit features phones from its portfolio.
“It’s quite encouraging that LG’s handset business has finally turned around. The profit figure is very small, but earnings will improve going forward as its massive restructuring is finally having some bottom-line impact and its Optimus LTE model is selling well. However, it’ll be hard to imagine a stellar turnaround.”
– Greg Noh, an analyst at HMC Securities told Reuters.