(Telecompaper) LG Electronics reported second-quarter sales down 7.6 percent year-on-year to KRW 13.93 trillion (USD 12.69 billion). Operating profit fell to KRW 244.1 billion, and net profit dropped to KRW 226.4 billion, in what LG called "an extremely challenging environment". LG said market conditions were more difficult than expected, but it hopes to recover the lost ground in Q3 with new products and more effective marketing. Sales at its mobile division were up just 1 percent in the second quarter to KRW 3.65 trillion, and smartphone shipments fell 3 percent from a year ago to 14.1 million units. Overall profitably was affected by weaker demand in the premium segment in its domestic Korean market, LG said. This was offset by 36 percent year-over-year growth in North America sales, due to a better performance of mid-range smartphones and tablets, and a record of over 8.1 million LTE smartphones sold in the quarter. From Q3, LG said it will more aggressively implement its dual strategy of focusing on both premium devices as well as mid-range smartphones targeting emerging markets.