LG is still in the red, owing to poor sales of mobile phones and TVs, prompting the company to hasten its turnaround efforts by pushing out a new line of smartphones.
The South Korean company reduced its losses to $14.6 million in the quarter, from a staggering $229 million in December 2010. Since underestimating the importance of high-end, app-centric phones in 2009, LG’s shipments have slipped far below Apple’s and Samsung’s sales.
LG’s handset missteps echo those of Nokia, which also underestimated the importance of the app-centric smartphone market. But while Nokia has pinned its hopes on Microsoft’s unproven Windows software, LG is following Motorola and HTC into the Android game, drafting on the platform’s already-massive popularity.
“We still have many weaknesses,” said David Jung, LG’s chief financial officer. “We still have a long way to go.”
LG is also pinning its hopes on new smartphones, which make up 20 percent of its profits. The company plans to introduce three dual-core handsets — the Optimus Black, 2X and 3D — in the coming months. LG hopes these phones can contribute 30 percent of total profits this year.
The company also started rolling out 3D TV sets after the unit, which makes up 40 percent of its total revenue. LG expects to sell 45 million of these 3D displays this year.