Smartphone competition weighs on LG earnings as company posts losses
APSEOUL--LG Electronics Inc. said its handset business sank into the red for the first time in a year as it cut prices and spent more on marketing to carve out a share of the high-end smartphone market.
October 25, 2013, 12:27 am TWN
The South Korean company reported Thursday that its mobile communications business lost 79.7 billion won (US$75.5 million) in the July-September period, even after selling 12 million smartphones. It was the first red ink since the third quarter last year.
LG blamed its weak result on higher marketing costs to promote the G2 smartphone, its flagship model released last month, and intense competition that forced it to lower prices.