When it comes to smartphones, both Samsung and LG are probably the two biggest names out of South Korea, although it would seem that Samsung has the edge. However back in Q3 2013, LG appeared to be doing quite well and actually reported a profit of 43 billion won, which is roughly $39.7 million when converted, however the South Korean company could not maintain those profits and saw Q4 2013 take a loss where they reported an operating loss of 56 billion won, which is around $51.7 million after conversion.
This is a bit odd given that LG had actually sold more phones than they did last year, where they managed to sell 13.2 million phones in the quarter which was about 54% higher than the same period back in 2012, and a gain of 8.3% from Q3 2013, so how can LG sell more phones but make a loss? There are many factors one has to take into consideration, although in LG’s case, it seems that they ended up spending more than they made.
According to their report, LG had actually spent a fair amount of money marketing phones like the LG G2 and the LG G Flex which ended up negating that amount of phones actually sold. Will LG make the same mistake this quarter? We certainly hope not.