LG posts profit boosts from smartphone sales

South Korean electronics firm LG has announced a third quarter profit after shipping a record number of smartphones, it was announced today.

According to Reuters, LG posted a net profit of $138 million (£86 million) for the last three months to end of September, a dramatic jump of 59 per cent compared to the same time last year when it posted a loss of $366 million (£300 million).

LG's mobile division has seen the biggest growth, posting a $19 million (£12 million) profit compared to a $126 million (£78 million) loss just a year ago. Overall the company has shipped more than 14 million handsets.

Previous losses show that LG has struggled to compete in the smartphone market as consumers have flocked to Apple's iPhone and Samsung's Galaxy range.

However, the latest profits show that the Korean firm is gaining important ground in lower end of the market. Experts are still cautious that the company will be trapped in a low-margin cycle, unable to make sizable profits on its smartphones.

"Today's results show that it doesn't have to be Apple or Samsung to make profits in smartphones", said Hong Sung-ho, an analyst at I'm Investment & Securities.

"LG won't be able to earn double digit profit margin in handsets as Apple and Samsung do. Still, LG proved it has the potential to stand out among its second-tier peers of Huawei, ZTE, Motorola etc, with its manufacturing competitiveness", he added.

LG is hoping to compete with Apple and Samsung by releasing two new phones, the Optimus G and Optimus Vu II which are rumoured to be unveiled on 29 October.

The firm recently boasted that the Optimus G had a longer battery life and sharper camera than Samsung's Galaxy S3.