Earnings: Premium Handsets Boost LG Electronics Profits


imageRecord high sales of mobile phones helped double profits at the LG Electronics (SEO: 066570) handset division, the Korean conglomerate reported today in its second quarter earnings. Mobile phone sales jumped to 3.754 trillion Korean won ($3.695 billion), up 38.6 percent from a year earlier.

LG said it shipped 27.7 million units, meaning that by some estimates including Goldman Sachs’, the Korean manufacturer has surpassed Motorola (NYSE: MOT) to become the third largest handset maker in the world, just a quarter after steaming past Sony (NYSE: SNE) Ericsson (NSDQ: ERIC), now the smallest of the big five. LG reported that North America had been a particularly strong market for them, accounting for a third of all of their sales. It also singled out premium handsets as being particularly good to them, including strong sales of touchscreen models

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