LG posted record quarterly profit and sales in its second-quarter results announced today, a development some analysts believe will make it the world's third-largest handset vendor.
Total second-quarter 2008 net income at the firm surged 84 percent to SKW706.9 billion (US$691 million), from SKW384.6 billion (US$376 million) a year earlier. Sales during the quarter rose 22.5 percent to SKW7.23 trillion (US$7.1 billion), from SKW5.9 trillion (US$5.8 billion) a year earlier.
Mobile handset sales advanced 45 percent to 27.7 million units shipped, led by its high-end 'Voyager,' 'Viewty' and 'Venus' models. The vendor said it sold 7 million touchscreen devices during the period, at an average selling price of US$530. Profit at the mobile phone division, which accounted for 38 percent of revenue last year, doubled to SKW547.3 billion (US$535 million), on handset sales of SKW3.75 trillion (US$3.7 billion).
An International Herald Tribune report notes that some analysts, including Goldman Sachs, believe LG probably moved past Motorola in market share during the second-quarter to seize the number three position behind Nokia and Samsung. Nokia last week reported earnings and revenue that exceeded analysts' estimates though profits dropped by 60% and forecast that industry shipments this year may surpass its previous projection of about 10 percent growth.
Meanwhile, number-five vendor Sony Ericsson Friday said second-quarter profit fell because of declining sales of higher-priced handsets and product delays. The company plans to cut about 2,000 jobs as a result. Second-placed Samsung is scheduled to report results this Friday.
Tiny Korea will soon capture some 25% of the global mobile handset dominance. It has only taken them a short time to reach where they are and if the other mobile handset players dont buck up, Samsung and LG will definitely post more gains in the nearest future. Can you imagine Samsung and LG overtaking Nokia at some point?? Anything is possible....