LG’s Mobile Communications business was at breakeven during the second quarter of 2015, after reporting a string of operating profits, as its bottom line was impacted by “weaker demand in the premium segment in the domestic Korean market”.

It said that, moving forward, it will “more aggressively implement its dual strategy focusing on both premium devices as well as mid-range smartphones targeting emerging markets”.

Q2 2015 operating profit in the unit was KRW200 million ($172,700), compared with KRW86.7 billion in the prior year period, on sales of KRW3.65 trillion, up 1 per cent from KRW3.63 trillion.

The company noted price declines as a result of intensified competition and increased marketing expenses to support the launch of its latest flagship device, G4.

During the three months, the company shipped 14.1 million smartphones, a 3 per cent year-on-year decline and down 9 per cent quarter-on-quarter – not good news following the recent launch of G4 and its siblings. More positively, it said it sold “more than 8.1 million LTE smartphones worldwide” during the period, its highest ever.

On a group level, the company reported a net profit for the quarter of KRW226 billion, down from KRW412 billion in the prior-year period, on revenue of KRW13.93 trillion, down from KRW15.07 trillion.

It noted a “sluggish global TV market and intense competitive pressures”, although it said it is “confident it can recover lost ground in the third quarter with new competitive products and more effective marketing initiatives”.