LG Q4 2012 Earnings: Strong Sales Of Nexus 4 And Optimus G Couldn’t Rescue It From Losses !!

Must Read

What is the Value of Auditing a Marketing Campaign?

As a general rule, reviewing business best practices is not considered an exciting task. Rather, most business leaders would...

After Facebook And LinkedIn, Clubhouse Suffers A Data Breach!

After Facebook and LinkedIn's massive data leaks, now another data breach is making the rounds on the news! According to...

Apple Has Finally Found The Right Partners To Launch Apple Cars By 2025

Rumours of a possible Apple Car in the making has been doing rounds for quite some time. But so...

The two biggest global smartphone makers–Apple and Samsung– have already launched their earnings report for the quarter ending December 31, 2012. Yesterday, LG Q4 2012 earnings report was also declared; it was another dismal quarter for the company, reported $429 million in loss for the quarter ending December 2012. However, during the last quarter, LG Electronic got good responses from smartphone consumers–thanks to Nexus 4 and its Optimus G models, which boosted the company’s overall smartphone shipments. LG shipped 8.6 million smartphones during the last quarter. But these two smartphones (Nexus 4 and Optimus G) couldn’t offset the company’s losses for the quarter.

LG Q4 2012 Earnings

As smartphone shipments mounted up in Q4 2012, it’s really tough for anyone to believe that LG could post such as big losses for the quarter. The company succeeded to make $2.58 billion revenue from mobile sales for the quarter. However, the sales figure of LG isn’t impressive as compare to its competitors like Samsung and Apple. Furthermore, LG made $12.37 billion in revenue,  and reported $98 million in operating costs for the Q4 2012.

LG revenue in Q4 2012

In last quarter, a big chunk of smartphone market share was driven by the Chinese mobile handsets vendors–ZTE and Huawei. However, the Nexus 4 is still among the hottest smartphones, and Optimus G is yet to be released in some countries.

Advertisements

LG cash reserve in 2012

On Android platform, Samsung is unilaterally dominating, and it’s tough for other smartphone vendors to make profit on the platform. More importantly, LG is still struggling with Android to standalone their business around the world. In addition, yesterday, BlackBerry unveiled its two major smartphones—BlackBerry Z10 and BlackBerry Q10—which could be a big threat for the Korean mobile handset manufacturer.

During the last quarter (ending December 2012), LG harvested the success of Nexus 4 and Optimus lineups. Besides, the company is also expected to manufacture the next iteration of Nexus 4 this year. Despite the loss in Q4, LG reported profits of $80.75 million for entire 2012. However, the revenues of the company were down 6% in 2012, compared to the prior year, but its operating profit moved up to $1.01 billion, from $342.06 million a year ago. Its TV division also reported record-sales last year, and this is the reason why the division witnessed a yearly profit of over $480 million.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Flipkart Acquires 100% Stake In Cleartrip To Diversify Its Offerings!

In a bid to increase the diversification of its offerings, Flipkart is all set to acquire a 100% stake...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded and unparalleled...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter, with a...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one of the...

More Articles Like This