LG Electronics revealed that they have suffered its greatest loss for its second quarter profits. This is because of the extreme popularity of its rival phone companies, particulary Apple Inc. and all other companies which create smart phones, or phones that allow users to browse the world wide web and send electronic mail messages.
LG Electronics, which is based in Seoul, South Korea, reported a loss of 120 billion won, which is equivalent to 101 million U.S. Dollars. This is almost three times greater than what was predicted by five Bloomberg analysts. The main competitors of LG Electronics in the smart phone industry are Apple’s iPhone and Samsung’s Galaxy S.
These two phones altogether capture a large majority of the pie of smart phone sales. Aside from LG Electronics, Nokia Oyj also reported that they did not meet sales expectations for this quarter. On the other hand, LG is quite confident that they will make it up to this loss by the last quarter of this year, because by then, they will introduce 20 new smart phones.
The main goal of LG now is to do all means to make investors regain confidence in LG for the second half of the year.
