Last quarter of 2014 went good for LG Electronics. The Q4 which started from 1st October and came to an end on December 31st gave them a revenue of 15.27 trillion won (US$ 14.06 billion) which is an increase of 4.9% compared to the same quarter last year with operating profit of 275.1 billion won (US$ 253.31 million). The hike in operating profit went up by 28 percent as compared to the same period of previous year. The Q4 resulted as postive for LG Electronics, Google Inc and Lenovo while it came out to be bad for Samsung.
Last year the Korean giant had closed the LG’s plasma TV operations which might have accounted for a net loss of 205.7 billion won (US$ 189.41 million) compared to last year.
For the complete financial year of 2014, LG reported a net profit of 501.40 billion won (US$ 474.81 million) which is again a 125% increase compared to 2013 while YoY had an increase of 46% which accounts for 1.83 trillion won (US$ 1.73 billion) profit.
In the mobile smartphone sector LG reports a quarterly revenue of 3.78 trillion won (US$ 3.48 billion) which accounts for 5% increase compared to the same quarter in 2013 while the annual revenues grew to 16% compared to 2013 which got expressed in figures of 15.06 trillion won (US$ 14.26 billion). The growth in mobile smartphone sector is due to the increased sales in North America region giving a YoY of 78%.
In the last quarter of 2014, the Korean giant shipped 15.6 million smartphones whereas they shipped 16.8 million in the previous quarter. Overall the company shipped a total of 78.2 million devices accounting for an increase YoY of 18% though the operating profit margins decreased QoQ due to lower ASP driven by intensifying competition, weaker demand in the domestic market, and unfavorable FX movements, said the company.
Since the last year the company had been making quality products resulting into the growth. Their last success was Nexus 5 followed by the company’s own flagship, LG G2 and then LG G3 and its other variants. The company is planning to improve profitability along with better brand equity while strengthening the presence in the premium segment by launching market leading products, running models more efficiently, and concentrating more on selective markets.