LG Electronics' profit crashed 99% in the September quarter on tumbling handset sales, while Motorola grew revenue for the first time in years.
LG's profit for the quarter shrank to 8 billion won ($7.1m).
The handset division shipped 28.4 million devices - 32% fewer than in Q209. Revenue at the unit fell 30%, and it swung year-on-year to a 326 million won ($290,000) operating loss. Earnings increased or stayed flat in every other subsidiary.
LG said mobile phone sales declined in North America and Europe - which together account for over 50% of shipments - but increased in Korea and some emerging markets. Operating margin on handsets fell to negative 10.1%, a mirror image of its margin from a year ago.
LG is looking for a holiday season bump in sales, tipping shipments will grow by high-single digits.
The vendor is pinning its handset turnaround hopes on its Android-based Optimus One in North America – the device has so far seen strong domestic sales, LG said.
LG Electronics had been widely expected to report a loss for Q3, so the result was better than expected. But that did not prevent LG stock on the Korea Exchange falling 1.96% to 100,000 won yesterday.