Profits Of LG Increase Behind Impressive LG G3 Sales

Total profits of LG for 2014 have increased by two-fold due to an increase in demand for its televisions and the flagship LG G3. While the South Korean manufacturer saw an increase of 24 percent in smartphone sales compared to the previous year, the company recorded an overall loss in the last quarter after it abandoned its plasma televisions.

Total net profit for 2014 reached around $475 million, which is two times higher than its total for 2013. The last three months saw smartphone sales reaching 15.6 million units.

However, the last quarter of the year saw the company experiencing a net loss of around $189 million. The losses resulted from the end of the plasma television business of the company. LG has started to move towards the production of OLED as well as Ultra HD TVs.

In spite of the gloomy record in the last quarter, the home entertainment division enjoyed a good year as its annual operating profit increased to around $482 million. LG is expecting the increased demand for its Ultra HD and OLED TV to spur growth further despite increased competition from other manufacturers.

Profits Of LG Increase Behind Impressive LG G3 Sales

The appliance business of the company also saw some growth last year. Moving forward, LG will compensate an expected slow overall demand with innovations for its energy-efficient products while enhancing cost-competitiveness. The company also reported that total sales of the LG G3 surpassed the 59 million unit mark as LG is gradually catching up with Samsung, which posted its fifth straight loss this week.

Posted by James Fried on Friday January 30 2015, 2:48 PM EDT. Ref: CNET. Link. All trademarks acknowledged. Filed under Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0