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LG smartphone success sees 125% leap in profits

LG has announced its operating profit ‘increased significantly’ in 2014, seeing a 125% rise in net profit.

This is largely thanks to the expansion of its smartphone business, leading to a healthy $475 million in profit across the year.

The news came as part of LG’s earnings call, which revealed that the South Korean firm managed to ship an impressive 59.1 million smartphones last year.

That’s a 24 per cent rise year-on-year, turning around a total revenue of some $14.3billion.

When you consider that the company raked in a total $56 billion in revenue last year, it means that smartphones made up around a quarter of the entire yearly income.

Despite this mobile success, LG did warn it was ‘expecting a challenging year ahead, with greater competition globally from various manufacturers.”

LG will concentrate on improving its brand power, operating more efficiently, and focusing on selective key markets,” wrote the company.

Related: LG talks down rival TVs as ‘just LED’

What’s more impressive is that the firm managed such strong profits despite reporting a $189 million loss in Q4 thanks to the rubbishing of its plasma TV business.

LG is clearly putting a big focus on smartphones in the year ahead too, having just announced its LG G Flex 2, and with the LG G4 just over the MWC March horizon.

The company is also expected to make a big branding push for its range of OLED TVs this year, fending off competition from rival televisual offerings like Samsung’s new S-UHD displays.

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