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LG Get High On Smartphones, Profits Jump

LG has “solid” second-quarter as profits rise on mobile revenues, but appliances and TV’s were also up. 

The Optimus G maker enjoyed strong performance in most business units, its Q2 financials released today, show. 

LG’s mobile revenues soared a massive 34.5 percent y-o-y to $2.78 billion – shipping 12.1 million smartphones in the second quarter April-June – its highest ever figure, as it looks to nab smartphone share from Samsung and Apple.  
It looks set to announce the follow up to premium end Optimus G, simply called ‘G2’, next month in New York. 
The Korean giant expects mass-market smartphones L-Series II and F-Series to drive sales, while high-end products such as G Pro and G2 will increase competitiveness, as it goes up against Android kingpins like HTC One and Samsung Galaxy S 4. 
LG is also a big player in the feature or ‘dumb’ phone category. 
However, the company cited weaker mobile demand in the Korean market, lower average selling price (ASP’s) due to increased competition, and higher marketing spend. 
LG’s second-quarter revenues rose 10.1 percent year-over-year to US$13.58 billion, while net profits of $139.04m, was up from Q1 2013 but from down the same time a year ago. 
However, falling operating profit figure of $426.92 m was blamed on “intense competition and slower demand” resulting in lower ASP’s. 
Revenues in LG Home Entertainment division, which includes TV’s and Hi-Fi, rose  6.4 percent to $4.91 bn, from the first quarter. 
LG recently sought to lead the TV battle unveiling the world first curved OLED TV and recently released a stunning Laser TV here in OZ, with actor Ewan McGregor its brand ambassador. 
It has pledged to invest in the premium, large-screen TV market Ultra HD TV and OLED TVs in developed markets, despite “continuing weak demand globally and expected increased competition,” it said in a statement.   

The LG Home Appliance division recorded the highest quarterly revenues in its history $2.84 billion, up 11 percent from the previous year, with improved sales in the US, China and Latin America.
The appliance maker says it will focus on continuing to grow the category by developing improved energy efficiency products. 
LG Air Conditioning reported record-high revenues of $ 1.55 billion in the second quarter, up 18 percent on an annual basis.