Published on May 16th, 2013 | by Lizajohn0
LG Q1 Report Is In: Smartphone Sales On The Rise
If you are an LG fun then you must be very happy that the company is actually making profit and moving forward. Their first quarter report is out and it shows that LG is making a good progress with much sales of Smartphone that is on the rise compared to the first quarter of 2012.
It is clear in their report that LG mobile division stunningly shipped 103 million Smartphones in the first quarter of the year making them to have a growth in sales for up to 30% comparing this with the last year’s growth of the first quarter.
The sales also include the 15% sales increase that LG made over the previous holiday quarter making a very impressive improvement.
The phone unit profitability also doubled within the first Quarter
From the report, LG did not just improved in the sales but they were also able to make much profit within this first quarter of the year. The profitability of the phone unit within this particular period was more than double. The operating margin increased drastically and this is what is reflecting this profitability within the first quarter period.
From last year to this year, the profit margin increased from 2% to 4% which means that the profit actually rose from $50 million to $119 million. This was largely contributed by the mass sales of the Optimus G and its L series handsets that were already in the market.
What are the expectations of LG in regards to the next Quarter or Q2?
They are really very optimistic and they are expecting much growth in the second quarter of the year as well. This expect that the Optimus G Pro tablet and L-series II handsets will be able to boost the sales further helping them to have another big profit margin come the second quarter of the year.
You must be wondering whether they will make it with the tough completion that they are getting from their rivals like Samsung.
LG Optimus G2 is competing with the Galaxy S4 to get the money back by December and we are just waiting to see what shall happen by then.
LG made a very sound launch when Samsung was winning the competition and that really helped then to come back to their position. It came with the Optimus G Pro to compete the Note II and also Optimus G to tackle the Samsung’s Galaxy S III.