LG

LG had a profitable Q4 2017, but no thanks to smartphone sales


LG Electronics has recently revealed its earnings for Q4 2017. For the October-December period of last year, the estimated operating profit of the Korean company is at 366.8 billion won, which is about $343 million.

The data indicates a strong year-over-year increase, as LG recorded an operating loss of 35.2 billion won ($33million) in Q4 2016. Meanwhile, sales estimates were also up 14.8 percent over the aforementioned period. 

It's worth noting that market analysts expected to see a stronger quarterly performance from LG. It was estimated that operating profits would reach 471 billion won. However, despite the lower-than-expected results, operating profits in 2017 are the second highest in the company's history, behind 2009.

These numbers are encouraging, but unfortunately, it seems that LG Mobile is still losing money. The firm did not post a net profit for Q4 or a breakdown for each segment of its business, but analysts estimate that the smartphone manufacturing branch is about 200 billion won ($187 million) in the red despite an increase in sales of the V30 and Q-series smartphones. 

LG Mobile recently appointed a new chief executive who will try to turn the division's fortunes around. In case you're wondering, LG Electronics' profitability surge in Q4 is likely due to strong sales of premium OLED TVs and home appliances.

source: The Investor

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15 Comments

1. Tommy1960i

Posts: 144; Member since: Oct 11, 2013

The G6 is not a bad phone, V series is strong as well. People are just not that interested in them for some reason. Maybe stock android will help...

2. Trex95

Posts: 2383; Member since: Mar 03, 2013

There’s some reasons most important one LG screens always has an issues especially with image retention aka ghosting screen faced this issue with my pervious G6 I thought G6 doesn’t has it, but still there.

3. Arch_Fiend

Posts: 3951; Member since: Oct 03, 2015

It's about time LG do away with their display problems, I have high hopes for their next display.

9. Xperia14

Posts: 1208; Member since: Sep 01, 2015

I noticed it as well on my G6 three weeks ago for the first time. The AOD was printed in the screen for a while. I noticed it because it was dark and my brightness was pretty high, but otherwise it's hard to notice (and that's a good thing, as it happens all the time). Another problem that I noticed from the beginning is some backlight bleeding at the bottom of the screen. I kind of regret that I didn't trade it in for another one because of this. Let's see how they improved the screen of the G7.

4. STRANG3R

Posts: 234; Member since: Sep 24, 2015

Front camera and battery life of LG G6 is pathetic

6. So-min

Posts: 55; Member since: Dec 07, 2017

Reviews say the other way around. G6 is camera champ after Galaxy note 8.

10. Xperia14

Posts: 1208; Member since: Sep 01, 2015

The G6 is definitely not a camera champ. Its main camera is good, but nothing more than that (keep in mind that they used a very small and old, cheap sensor). The front camera is indeed pathetic, but I don't care about that one because I never use it.

5. chenski

Posts: 773; Member since: Mar 22, 2015

Luckily for LG their mobile divion is only a small chunk of their business

7. Sania

Posts: 97; Member since: Nov 04, 2017

While V series designs are good, the G flagships are all boring

8. midan

Posts: 2982; Member since: Oct 09, 2017

Same story what i wrote to HTC article "No brand name, no sales, sad reality for many smartphone companies. if you have htc phone and samsung phone in stores, 99% choose Samsung because they know it much much better. Huawei made impossible and got brand name for them and is now stealing sales from Samsung around Europe and China. i think they did this because they first sold very cheap android phones with great specs, and now when they get more and more brand name they can ask more and sell higher price models too because now lot of people know what they are getting. I can't see what HTC could do to make their situation better." just change HTC word to LG

16. raky_b

Posts: 409; Member since: Jul 02, 2014

Agree with all but I think i do see what they should do...offer better phone for less money than Samsung and Apple do. Since this 2 companies makes most money per device, it is obvious that LG(that can produce almost whole device in it's own factories) can sell devices cheaper, make less profit (ok, now...I know it's hard to make less, when you are already in red,but still) and try to sell more devices to make people familiar with a name, if possible without spending that much on marketing, but to let devices "talk for it self". As you wrote, no one would buy LG if it costs same as iphone or Galaxy S phone. And that's why LG is loosing money, while f.e. Xiaomi and Oneplus is making...even with purer devices,and smaller sale margins.

12. DFranch

Posts: 555; Member since: Apr 20, 2012

The V30 is a great phone. Rear camera is good, wide angle lens is great. battery life is great as well. Front camera isn't great, but I don't take selfie's. The screen is good too. I know it has gotten bad press, but I have no issues with my screen.

15. raky_b

Posts: 409; Member since: Jul 02, 2014

It's great, but why would I give 300€ more for it, over galaxy s8!? Yes it has better audio options, it has flat screen, and it is little bit bigger than s8, but not 300€(or more) better. I really don't understand why people continuously compare it with Note series, when Note is Note just for a Pen....and they all are saying that it's priced good(which it's sale numbers disapprove), when V30 is more like Galaxy S series!? So if LG can't make that good device for 600€, they should just stop trying. LG's problem(and many other have a same one) is that smartphone market is shared by 2 big players, and to take share they shoud offer more for less money...and they don't.

13. jellmoo

Posts: 2620; Member since: Oct 31, 2011

Lay out an Optimus G, G2, G3, G4, G5 and G6 on a table and try to identify the LG design aesthetic. You can't because there isn't one. LG hasn't created the definitive LG device. When you see an HTC device, you know it's an HTC device. Same for Samsung. Same for Sony. LG has failed to do that. People just don't feel passion for their handsets, and until LG figures out a way to get that as part of their brand, they'll continue to have the same level of mediocrity and just be the "Oh, you mean it's kind of like a Galaxy?" of the Android world.

14. raky_b

Posts: 409; Member since: Jul 02, 2014

If they are losing that much money, over that many years, why don't they just go out of mobile buisness???

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