Finance Finance News Smartphone competition hits LG earnings

Smartphone competition hits LG earnings

Smartphone competition has weighed on LG Electronics earnings, with third quarter profit sliding 34 per cent.
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LG Electronics Inc. says its third quarter profit slid 34 per cent as it cut prices and spent more on marketing to carve out a share of the high-end smartphone market.

LG on Thursday reported July-September net income of 108.5 billion won ($US103 million) compared with 164.5 billion won a year earlier. Analysts forecast 197.6 billion won, according to financial data provider FactSet.

The result shows the challenges faced by handset makers trying to break into the premium smartphone market dominated by Samsung and Apple.

LG blamed higher marketing costs and intense competition that forced it to lower prices. Its handset business lost 79.7 billion won despite selling 12 million smartphones.

Quarterly sales rose 5 per cent to 13.9 trillion won ($US12.5 billion). Operating profit was up 27 per cent to 217.8 billion won.