LG continues to lose money selling smartphones

LG has reported its third quarter earnings, and for the three month period that covers July through September, the mobile division took a loss of $331.17 million. With red ink staring it in the face, the manufacturer focused on the 8% gain year-over-year in mobile revenue, and the 4% revenue gain from this year's second quarter. The loss was actually 13% smaller than last year's red ink. In South Korea, third quarter smartphone shipments were up 44% from the 2016 total. In the states, shipments of intelligent handsets rose 9% year-over-year.

Make no mistake about it though; times are tough for LG's handset business. In the third quarter of 2014, LG sold 16.8 million smartphones. That figure was reduced to 13.7 million for this year's Q3, a decline of 18.4% over three years. The problem appears to be malnutrition. Malnutrition? Yup, Samsung is eating LG's lunch in the flagship market. Of course, the ill fated attempt to produce a modular flagship phone with the LG G5 didn't help LG's cause. Neither did having Samsung snap up all available Snapdragon 835 chips forcing the LG G6 to use the Snapdragon 821 SoC instead.

The same thing is expected to repeat with the LG G7 as Samsung is expected to get first dibs on the Snapdragon 845 chipset for next year's Galaxy S9 and Galaxy S9+. Unless LG can come up with something for the LG G7 that is unique and appeals to smartphone buyers, the 2018 numbers will be just as gloomy.

source: AndroidAuthority

Related phones

G6
  • Display 5.7" 1440 x 2880 pixels
  • Camera 13 MP / 5 MP front
  • Processor Qualcomm Snapdragon 821, Quad-core, 2350 MHz
  • Storage 32 GB + microSDXC
  • Battery 3300 mAh(20.5h talk time)
V30
  • Display 6.0" 1440 x 2880 pixels
  • Camera 16 MP / 5 MP front
  • Processor Qualcomm Snapdragon 835, Octa-core, 2450 MHz
  • Storage 64 GB + microSDXC
  • Battery 3300 mAh(16.5h talk time)

FEATURED VIDEO

60 Comments

1. Back_from_beyond

Posts: 1162; Member since: Sep 04, 2015

They should've opted to delay the G6 to incorporate the SD835, the V30 is a pretty solid phone though. Pretty much everything else they release has sucky specs at too high a price. And they should do some damn marketing!!!

18. g2a5b0e unregistered

Adding the 835 to G6 wouldn't have changed the sales numbers. 95% of the buying public doesn't care or even know what those numbers mean. Marketing definitely helps though.

29. GuitarPlayer

Posts: 54; Member since: Nov 15, 2012

Agree. Actually i own one G6 and it's amazing! I m loving it, and i came from Galaxy S7. G6 is very fast.

50. tangbunna

Posts: 446; Member since: Sep 29, 2016

if lg consider lg flex 2 recall like note7, i will turn back to lg

35. TeriusRose

Posts: 108; Member since: May 12, 2017

EXACTLY. I've made that point many times myself. I don't know why so many people buy into the idea that "phone x would've sold so much better if it had component y". No. No it wouldn't have. Most people don't understand spec sheets, much less base their purchases on them. They don't seem to understand that most people are not like techies. It's a myth that people like to tell themselves.

49. DoggyDangerous

Posts: 1028; Member since: Aug 28, 2015

Lg is also step behind than Samsung in technology. POLED is showing its immaturity. V30 and pixel 2 both are showing unequal levels of brightness in the screen. LG also used imx258 in G6. Which is considered upper midrange camera sensor. LG might have easily out classed S8 in camera by using better quality camera sensor, but they didn't to save money. Same with V30, it is falling behind in night photography.

51. Back_from_beyond

Posts: 1162; Member since: Sep 04, 2015

Except most people do look up a phone review before buying it and if you read things like " comes with last year's Snapdragon 821" or so, people will question their interest and whether or not it's worth the money.

52. g2a5b0e unregistered

You give "most people" too much credit if you really believe that.

34. kakudiego

Posts: 123; Member since: May 21, 2014

Lg is bad pricing there phones. V30 needs a 650-700 price or will fail again!

2. Justlooking

Posts: 84; Member since: Aug 27, 2014

Hopefully the G7 will be as solid as the V30 and get them on the right track.

4. Back_from_beyond

Posts: 1162; Member since: Sep 04, 2015

Rumor has it the G7 will be using the SD835, not the SD845, because Samsung will be hogging the first batch of those.

19. trojan_horse

Posts: 5868; Member since: May 06, 2016

LG should do whatever it takes to secure something other than the SD835. It'll be too bad if they can't.

26. roldefol

Posts: 4744; Member since: Jan 28, 2011

I thought the rumor was the exact opposite - that after Samsung hogged all the 835s last spring, LG is doing everything they can to secure the 845, and maybe be the first device with it in the G7.

30. uncle_gadget

Posts: 1050; Member since: Sep 20, 2017

44. roldefol

Posts: 4744; Member since: Jan 28, 2011

Ah, thank you. Although the way I read that, if LG is willing to wait until after the S9 hits the market (unlike this year), they could still get the 845. And LG should know by now that trying to leapfrog the competition does not mean they get ahead of the competition in the end.

3. surethom

Posts: 1588; Member since: Mar 04, 2009

Just make the V30 smaller in the the G6 dimensions with universal wireless charging & take my money did not like the screen on the G6

15. Wiencon

Posts: 2278; Member since: Aug 06, 2014

Then there will be really no difference between those two in the eyes of the customers. V10 was so unique, Flex was unique, LG can make unique smartphones but after a little time it always copies Samsung in the end which is a shame. Optimus G is probably in my top 3 Androids ever

5. Valinor

Posts: 169; Member since: Mar 26, 2013

I hope they go bankrupt. Any brand releasing their flagship phone 3 months after its presentation should go bankrupt.

27. roldefol

Posts: 4744; Member since: Jan 28, 2011

Yeah, and I'm sure they'll be taking Apple with them.

6. nctx77

Posts: 2540; Member since: Sep 03, 2013

All the robots turned to Samsung sheep!

7. wilky

Posts: 34; Member since: Jun 30, 2014

The G7 only option next year will be either a 835 or 836 if Q decide make one. LG are not a poor company they make billions a year, just not as much as Samsung what LG need to do is design their own inhouse SOC like Samsung do.

10. thedizzle

Posts: 190; Member since: Oct 05, 2017

NUCLUN was a thing, but not really lol. Look it up

8. Clars123

Posts: 1073; Member since: Mar 16, 2015

They have themselves to blame. Who announces a phone and goes for 2 months without announcing pricing or availability? Then roll out units with defective screens and put out stupid ads that do nothing to highlight the device.

9. You_Dont_Say

Posts: 431; Member since: Jan 26, 2015

Time for Android OEM's to give up! ROFL #AppleIsKingOfProftis

11. thedizzle

Posts: 190; Member since: Oct 05, 2017

proftis indeed, kek

16. Hollowmost

Posts: 414; Member since: Oct 10, 2017

Top notch

38. Lumia_Luigi

Posts: 173; Member since: Mar 22, 2017

How do you upvote yourself twice?

14. Tziggy14

Posts: 622; Member since: Sep 02, 2014

I think it's time for LG to call it quits, Samsung has the high end market and Chinese brands have the low end market and gradually moving towards the middle, LG can't win.

17. jove39

Posts: 2137; Member since: Oct 18, 2011

Lose android skin and switch to stock android. You’ve winner.

21. trojan_horse

Posts: 5868; Member since: May 06, 2016

Stock Android won't help LG 's sales in any way whatsoever.

* Some comments have been hidden, because they don't meet the discussions rules.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.