Device TechnologiesDevice Technologies

Device Technologies

Q1 12 LG Profitability Improves at the Expense of Marketshare



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Report Summary:

LG shipped a lower-than-expected 14 million handsets in Q1 2012, as marketshare slipped to new lows. A bright spot, however, was a continued improvement in profitability and ASPs thanks to a shift away from feature phones and greater emphasis on higher-margin smartphones and superphones. During the quarter, LG continued to struggle in the low-end 3G smartphone space, in face of fierce competition from domestic rival Samsung and Chinese vendors Huawei and ZTE. However, a refreshed portfolio and an improving multi-screen and cloud strategy could help LG expand across price tiers in 2012.

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