Profits hit £21.2 million in the first three months of this year but revenue and shipments fall
LG Mobile more than tripled its quarterly profits for the first three months of this year to £21.2 million compared to £6.5 from the final three months of 2011. This also compares to the £55 million loss it made a year ago.
The handset manufacturer said this was a result of a better product mix and an increase in the proportion of smartphone sales.
However, revenues declined 14.2 per cent year-on-year to £1.4 billion, compared to £1.6 billion in the same quarter last year. They also fell nine per cent from the previous quarter.
LG said this was due to declining feature phone sales but smartphone revenue increased due to the increased popularity of the Optimus LTE and Optimus Vu handsets in its home market of Korea.
Shipments also decreased to 13.7 million, a fall of 22 per cent from the previous three month period.
LG said that although total demand for handsets is not expected to grow fast, continuous growth for the smartphone market is expected, especially for LTE phones in the developed countries with the European market planning to commercialise LTE.
It said it plans to expand its LTE handset line up for the developed markets while launching its L-Style series and Optimus 4X HD smartphone (pictured centre), which is powered by a quad-core processor. The L3 (pictured left) was released in the UK earlier this month, with the L7 (pictured right) due for release in the coming weeks.