July 25, 2016
South Korea-based LG Electronics has reported its results for the second quarter, with record handset sales pushing net profits up 84% to US$695 million.
The mobile phone and consumer electronics manufacturer shipped a record 27.7 million handsets, an increase of 45% on year.
Consumer electronics also performed well, with crystal display TV sales up 86% and plasma TV sales up 31%.
Total sales for the quarter were $7 billion, up 22.5% compared to the second quarter of 2015.
The increase in handset sales was largely driven by LG’s high-end touchscreen handsets, which include Viewty, Voyager and Secret models.
Hype surround Apple’s 3G iPhone pushed up demand for touchscreen models, with 7 million touchscreen handsets sold, remarkable considering that LG released its first touchscreen mobile phone just 15 months ago.
Viewty, which incorporates a 5-megapixel camera, was the top selling touchscreen handset with 2 million units shipped.
LG expects that sales and profitability will decline throughout the rest of the year because of slower demand and increased competition, although margins will remain in excess of 10%.