LG Electronics has announced their earnings for Q1 2014, in which it has reported net profit of 92.60 billion Won (US$ 86.62 million) with operating profits of 504 billion Won (US$ 471.47 million). Mobile communications sector earned revenues of 3.41 trillion Korean Won (US$ 3.1 billion), a 6% increase YoY, but sales decreased by 5% QoQ. Operating profit increased due to the launch of G Pro 2 in the domestic market and more efficient marketing spending, LG said.
LG shipped 12.3 million units of mobile phones in Q1 2014, which is slightly less than last quarter, but it shipped 5 million LTE smartphones, a 76% increase YoY, and 2% QoQ due to better G2 and Nexus 5 sales. It has confirmed that it plans to launch the LG G3 smartphone in premium segment and to roll out new phones in the L Series III mass tier segment.
LG aims to increase profitability by strengthening cost competitiveness in the mass market segment. Although sales in domestic market decreased by 23% YoY due to the influence of the suspension of business on operators, total sales increased by 16% QoQ due to increase in sales of the LG G Pro 2, said the company.