LG has published their 2011 first quarter sales result and they have beaten their own volume of sales compared to the same last year , they have made very less profit and the struggle continued till end of 2010.LG quote sales around Us $12.6 billion.
The Drop is temporary as the cost cutting and cheaper unit prices were used. LG quoted its biggest Losses within the Home theatre Entertainment Sector with sales dropping by 4.8% since the first quarter survey in 2010. Mobile Communications and more specifically Handsets have been under achieving too, with an 8.3% drop in Mobile Communications and a 9.2% drop on handsets in particular compared to Q1 of 2010.
With regards to this LG has exported 14.5 million units, 10% less of Q1, 2010 but they have made good sales on their premium phones like LG Optimus 2X. To make back some ground they intend to further this by pushing some new models for Q2; namely the Optimus Black, the Big (aka the LG LU6800), the 3D and the LTE Revolution. We've already seen the Big pop up in LG's homeland and there are no plans to release it elsewhere.
In the last quarter alone it seems that Europe accounts for the biggest shift having fallen out of favor with LG handsets causing the company a 4% drop in shipping to that specific market. They have made ground back in places like Africa and North America, but not enough to allow them to 'breathe easy'.
The full Affair is available here http://www.lg.com/global/download/pdf/1Q-2011-Earnings-Eng-FINAL.pdf
Competitors already giving a tough competition with newest releases, LG knows very well that they have to try hard to make up for their lost ground.
