Introduced in April, smartphone LG G4 is facing hard competition from Samsung flagship devices and Apple. And it is because of its low sales in the second quarter could be reduced quarterly profit of the Korean mobile unit LG.
Two key analytical agency in Korea almost halved their forecasts regarding the size of profit received by LG's from mobile division in the current quarter. Based on current performance, analytics firm Daishin Securities revised its forecast and now expect that by the end of the second quarter 2015 operating profit of the mobile unit will be $ 50.7 million instead of $ 92.3 million. But Korea Investment & Securities lowered its outlook from $ 104 million to $ 61 million. Previously, we recall, they predicted that this year, LG will sell no more than 8-12 million flagship smartphones. And if LG wants to reach this bar, then it needs to deliver at least 2-3 million units LG G4 quarterly.
It's quite a sharp drop, especially taking into account the fact that in the first quarter of 2015, before the release of LG G4, Korean mobile business profits were $ 66 million.