LG Electronics reported its biggest loss in two years, as it continues to lag behind rivals in the smartphone market.
LG’s mobile division posted its third straight quarterly loss for Q4, revealing a £155m operating loss, compared with the £181m loss projected based on the median estimate in a Bloomberg News survey of six analysts.
Revenue from handsets fell 15% and the number of phones shipped declined 10% to 30.6 million, LG said. RIM overtook LG as the fourth largest handset maker in terms of revenue last year, according to estimates at Merrill Lynch.
LG has begun the fightback, predicting an improved performance in 2011 as it rolls out its Android-powered Optimus smartphone range. In November, LG said the Optimus One became the company’s first smartphone to sell more than one million units around 40 days after its debut.
The company also plans £2.72bn in capital expenditures and research spending to help boost revenue 5.8% to £33.4bn this year.
However, analysts said the company will struggle to offset the fall in its feature phone sales, which represent 90% of the manufacturer’s mobile handset business, with any rise in its smartphone sales.
Neil Mawston, telecoms analyst at Strategy Analytics said: ‘Smartphones is where the action is and the pain will continue for LG for a couple of more quarters as it plays catch up in the smartphone market, having entered late and with a limited portfolio.’