Earlier today, LG Electronics shed some light on its market performance over the first quarter of the year, estimating that its Q1 operating profit rose by 82 percent to its highest over the past eight years and surpassing market expectations and analysts’ predictions. According to Hi Investment analyst Song Eun-jeong, in light of these recent events, it would seem that LG Electronics’ growth in the first quarter is largely attributed to its TV and appliances divisions, as well as the company’s efforts to commercialize high-end products.
According to LG Electronics, the company’s operating profit over the January-March 2017 timeframe had likely topped 922 billion won ($812 million), whereas analysts projected an average forecast of 518 billion won in operating profit. The company also added that revenue for the first quarter or the year likely grew by 9.7 percent to a total of 14.7 trillion won ($12.35 billion). The South Korean tech giant did not go into details regarding its forecast, but analysts seem to agree that the company’s latest flagship phone – the LG G6 – did not contribute to these figures as the handset started selling in South Korea in March and will only be hitting the shelves outside of the company’s home country today, April 7. Due to that state of affairs, the LG G6 will not contribute to the company’s profits until the second quarter of the year.
Hi Investment’s Song also added that LG Electronics suffered from fewer losses over the January-March 2017 timeframe as it managed to reduce market spending and its lower-tier products performed better than in previous quarters. The analyst further added that LG Electronics’ TV and appliances market will likely enter “a seasonally strong period” in Q2 2017. The second quarter of the year will also reflect on the LG G6’s market performance more accurately, and according to Song, the flagship in question is now the company’s biggest short-term variable in regards to LG’s earnings over the second quarter of the year. The LG G6 has been available for pre-orders in several regions and is now shipping to customers in the United States and numerous other countries. The smartphone is equipped with a 5.7-inch IPS LCD display featuring a resolution of 2880 by 1440 pixels, the Qualcomm Snapdragon 821 system-on-chip (SoC), and dual 13-megapixel main cameras. Its price tag varies from $650 to $700 depending on regions and retailers.
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