LG made 1.2 cents in profit for every phone it sold last quarter

froggyboy604

froggyboy604

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LG's latest earnings report shows just how tough the smartphone market is getting. On the one hand, LG Mobile shipped 8.1 million LTE smartphones, its best result ever. On the other hand, it sold fewer premium models in Korea and spent a lot of money marketing its flagship G4 in the US against models by Apple, Samsung, et al. (The company singled out Apple, saying that iPhone sales hurt its earnings this quarter.) The net result was a mobile operating profit of just 200 million won ($172,000) or 1.2 cents per phone. The good news is that the LG G4 has only been on sale in the US for two months, so it may have a stronger impact on LG's bottom line next quarter.

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1.2 Cents seems pretty low for smartphones.

I bet, LG would make more profit per phone if LG sold more Firefox phones at around $75-100. Firefox OS doesn't need a lot of RAM, or a very fast CPU to run smoothly like Android which needs more powerful parts like 2GB RAM, Quad-core CPU, and faster storage chips to run without slowdown problems, and crashes/freezes.
 
sometimes you have to take a hit to sell though.
 
alakazam said:
Agreed. They should give Firefox OS a chance. They could also try making some Windows smartphones, instead of just launching one Android phone after another...
Click to expand...
I bet, LG probably makes more profit from selling those $50-80 Flip phones in Canada than Android phones where they make 1.2 cents profit per phone.

Flip Phones probably don't cost much to make, but are sold for $50 because there are less tech savvy users who are willing to pay more for a phone which is easier to use.
 
Personally, I find flip phones more difficult to use than smartphones, but that's probably because I've been used to smartphones for quite a few years. I tried to use my grandma's regular (dumb) cellphone recently and could hardly figure out how to browse through the menu... lol :P 
 
I think making calls is simpler in Flip phones because there are physical buttons for pressing numbers, and launching the phone dialer.
 
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