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Wednesday, January 26, 2011 20:48 pm
SEOUL, KOMPAS.com - LG Electronics Inc. reported its first loss during the last seven quarters after losing to compete with smart phones (smartphones) from Apple Inc. and Research In Motion Ltd. (RIM), whose business is growing in the smart phone market.
Net loss of the world's third largest mobile phone maker is in the fourth quarter 2010 amounted to 256.4 billion won, or about 229 million U.S. dollars. In the same period last year, LG was still scored 361.9 billion won profit.
So no longer suffer losses, LG plans to increase the smart phone market share Optimus after the sale of mobile-phone division of LG major losses recorded three consecutive times in the financial statements quarterly.
LG preparing capital expenditure or capital expenditure this year of 4.8 trillion won and develop products to be able to increase revenue 5.8 percent to 59 trillion won this year.
"Operational Losses on the phone division will fall on the first and second quarter of this year after the company ready to sell the smart phone for upper middle class," said Han Eun-mee, an analyst at HI Investment & Securities Co..
LG mobile phone division posted an operating loss of 274.1 billion won. Revenue from handset sales down 15 percent and exports of mobile phones fell 10 percent. Merrill Lynch noted, RIM took over Motorola in the ranking of the world's largest handset maker in the achievement of revenue last year. (KONTAN/ Rizki Caturini)
Source: KONTAN
Editor: Tri Wahono
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