LG Electronics’ mobile business moved close to breakeven in the first three months of 2017, after generating a loss throughout 2016.

The company said an increase in sales was “driven by the launch of the flagship LG G6 smartphone and new mass-tier models”. Smartphone shipments of 14.8 million units were up 10 per cent year-on-year, “in large part due to the Americas”.

LG took a low-key view of its achievements. “While the effects of last year’s reorganisation are beginning to bear fruit, price competition in the mass-tier segment and competition from other flagship models are expected to increase this year.”

The company reported a Q1 operating loss of KRW200 million ($176,000) for its mobile business, on revenue of KRW3 trillion, up 2 per cent year-on-year.

On a group level, the company posted strong results, aided by the highest quarterly operating income for eight years in its Home Appliance & Air Solutions business. Its Home Entertainment unit also saw its highest Q1 operating margin, due to expanded sales of premium products, improved cost structure and a more flexible strategy to deal with panel price increases.

Group net profit of KRW835.7 billion compared with a prior-year profit of KRW198.1 billion, on revenue up 9.7 per cent to KRW14.66 trillion.