LG Electronics has posted its Q1 2017 outcomes, which express a just about 10 per cent 12 months-over-yr leap in revenue. The electronics maker is reporting KRW 14.sixty six trillion ($ 12.70BN) in revenue, a rise of 9.7 per cent from the same period remaining 12 months. while its operating profits (profit) nearly doubled, to KRW 921.5 billion ($ 798.3M).
On the mobile front, the quarter was once an important one for LG which launched a brand new flagship smartphone, the LG G6, whose twist is a 2:1 facet ratio show — prompting TechCrunch’s Romain Dillet to jot down that taller monitors are the future of smartphones.
Rival smartphone maker Samsung due to this fact outed its new flagship handset, the Galaxy S8, which additionally has a tall type issue and an elongated aspect ratio. while rumors suggest Apple’s next iPhone(s) may also p.c. taller screens. So LG’s bet on stretching the smartphone on its vertical axis, so as to add more actual estate with out turning the instrument right into a palm-stretching phablet, looks to be onto something.
evaluate that to the prior 12 months when LG guess on a fiddly (and because it grew to become unpopular) modular smartphone design, with the G5, and it’s clear how so much of a reorganization its mobile division has passed through — with what seems like promising early outcomes.
LG’s quarter additionally evidently benefited from it beating Samsung to the punch with its 2017 flagship smartphone launch. The G6 went on sale in its dwelling market in early March vs Samsung’s S8 handiest launching this month, after it had to divert tools to dealing with final yr’s Galaxy be aware 7 bear in mind. So the delayed launch of the S8 naturally gave LG’s G6 a window of time to shine and clutch smartphone buyers’ consideration. (Samsung has additionally posted its Q1 results nowadays — which data a income drop for its mobile division.)
LG stated its mobile division generated revenues of KRW three.01 trillion ($ 2.61BN) in the quarter, a rise of 4 per cent quarter-over-quarter and 2 per cent 12 months-over-yr — attributing the upward push to the launch of the G6 and new mass-tier fashions. Smartphone shipments have been 14.eight million units in the quarter, up 10 per cent from yr ahead of quarter — with LG attributing the growth “largely” to sales in “the Americas”.
regardless of some uplift for its cell division, the corporate does additionally warning it expects price war in the mass tier segment and competitors from other flagship smartphones to ramp up this year. So it will be fascinating to look whether or not it could sustain its early momentum.
past its cell trade, LG said its residence appliance & Air solutions division posted its very best quarterly operating income in eight years, reporting a ten per cent raise in first-quarter gross sales vs the 12 months in the past quarter and 15 per cent higher, quarter on quarter. Revenues for the division had been KRW four.64 trillion ($ 4.02BN).
whereas it flagged up its house entertainment division recorded its easiest first-quarter working margin of 8.8 per cent on gross sales of KRW four.33 trillion ($ 3.75BN).
LG additionally has a automobile components division, and mentioned this said “sturdy” sales of KRW 876.4 billion ($ 759.2M), a forty eight per cent upward thrust from the primary quarter of 2016 — which LG principally credit to a collaboration with general Motors on the Bolt electronic vehicle.
It provides that persisted investments in R&D and increase are anticipated to continue to affect profitability this yr. It’s maintaining a conference call on the earnings on April 28, at 09:00 Korea standard Time (00:00 GMT/UTC).
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