LG reports $68 million loss in third quarter, as smartphone business fails to find form

By David Curry Published October 30, 2015

lg g4 in hand 1500x1000 — Jessica Lee Star/Digital Trends

LG reported its first mobile operating loss this year in the company’s third quarter financial results, losing $68 million in the three-month period spanning from July to September.

The South Korean electronics giant sold 15 million smartphones in the quarter, but the average sale price was lower than a year ago. LG claims in the next quarter it should see the average sale price rise with the launch of the LG V10 and Nexus 5X, combined with more sales worldwide.

Recommended Videos

LG noted a 39-percent reduction in operating profit across its entire business, but still managed to report a $259 million operating profit. Total sales were down five percent to $12.3 billion.

Please enable Javascript to view this content

We didn’t get an exact sales figure for the LG G4, but based on an estimated 15 million total sales, the flagship is well behind the front-running phones offered by Apple, Samsung, and Huawei. LG also refused to release information on wearable sales, but reports claim it is under-performing in that market as well, with Apple and Samsung emerging as the two most popular vendors.

LG did confirm it made a profit on its TV business, and this is the first time in a year that it has done so. The company’s home appliance business made 80 percent of its third quarter profit, but that is a far cry from the performance analysts wanted from LG.

Financial reports across the Android device manufacturers have a similar tone this quarter: lower profits, a drop in sales prices, and a lack of products on the market. Chinese vendors Huawei and Xiaomi appear to have weathered the storm, however, with the former recently overtaking Apple for first place in the Chinese market.

It is still questionable whether LG will be able to return to profitability in the fourth quarter. The LG V10 doesn’t offer huge upgrades from the LG G4, and the Nexus 5X is overshadowed by its larger sibling, Huawei’s Nexus 6P. The market is currently flooded with new devices as well, including the Moto X Force (Droid Turbo 2) and OnePlus X coming later in the year.

Topics

Former Digital Trends Contributor

David has been writing about technology for several years, following the latest trends and covering the largest events. He is…

Mobile

The best marketing apps for small businesses

how to start online store stocksnap wp1khdxgoy

For small companies, marketing as a concept is all over the map and heavily depends on what sort of business you run. Small business marketing has evolved over time and continues to transform the commercial landscape in unpredictable ways. One constant, though, is the need for fresh strategies and campaigns to attract and retain customers and get your voice heard above the clamor. Part of that strategy is the judicious use of mobile apps.

Regardless of platform, apps are now instrumental in all types of marketing efforts. That's fortunate, because apps are generally free or cheap, and the only investment you need to make is the time to use them to their advantage. Apps can provide rich, detailed information, insights on trends, customer responses to products or services, and peer-to-peer exchanges of best practices. The rest -- maintaining high standards, treating your employees and customers with respect, promoting honesty and integrity in transactions, and managing company growth wisely for the long term -- is up to you. Below are some of the best marketing apps for small businesses that can give you a hand along the way. And, if you need additional resources on general apps for small companies, we've got you covered there, too.
Buffer

Mobile

The best LG Velvet cases and covers

Best LG phones

The wonderfully thin and stylish LG Velvet boasts a 6.8-inch screen that you'll want to protect, and it comes in an array of stunning color options, from Aurora Green to Illusion Sunset. Keeping your new phone scratch-free and protected from drops and bumps is easier when you've got a protective case, and so we've picked some of the best cases and covers available for the LG Velvet right now.
Anccer Compatible Ultra-Thin Case

For those who don't want to add bulk to the Velvet's slim contours, this is the case to get. It's one of the slimmest cases around, yet its tough polycarbonate shell protects your phone from drops, bumps, and scratches. The raised 0.3mm lip around the camera lens is a nice touch if you're a throw-your-phone-in-your-bag type, keeping the camera lens safe from keys and other sharp objects. It's easy to access all the phone's ports and buttons thanks to precision cutouts. Owners of the Aurora Green Velvet will love the deep metallic green version, but this case is also available in black.

Mobile

The Oura Ring 4 is out, so the Oura Ring 3 is on sale

A person wearing the Oura Ring 3rd generation Horizon model.

Fitness trackers come in all shapes and sizes, but did you know that they can also come in the form of rings? If you're interested, you can get the Oura Ring 3, a smart ring that can monitor different kinds of health metrics, with a $50 discount from Best Buy. Instead of its original price of $299, you'll only have to pay $249, but you need to act fast because we're not sure when the offer will end. Add the wearable device to your cart and proceed with the checkout process immediately if you don't want to miss the savings.

Why you should buy the Oura Ring 3
Despite the arrival of the Oura Ring 4, the Oura Ring 3 remains a worthwhile purchase as one of the best fitness trackers that you can buy. According to our Oura Ring 4 versus Oura Ring 3 comparison, the Oura Ring 4 is thinner and lighter, and offers a slightly improved battery, but it shares the same fitness tracking features with the Oura Ring 3, and both are compatible with iOS and Android smartphones. They also both require an Oura membership that costs $6 per month to unlock deeper insights and exclusive features, so the lower price of the Oura Ring 3 compared to the Oura Ring 4 is even more appealing.