LG's smartphone business is expected to post yet another huge loss in Q3 2018
by Joshua Swingle / Sep 17, 2018, 5:27 PM
LG G7 ThinQ
For years now, LG’s smartphone business has been posting loss after loss and, unsurprisingly, this trend looks set to continue into the current quarter with yet another big negative number.
To be precise, the South Korean company’s mobile division is now expected to post a loss of 600 billion yuan, or just under $533 million, during the third quarter of 2018. This is due to low sales and the high marketing costs that are associated with the business. On a more positive note, the company expects operating costs to drop dramatically starting next year – something that will help LG move closer to a profit – thanks to the various cost-cutting measures that are being implemented by the brand such as the reuse of flagship designs.
Despite the less-than-positive outlook for LG’s mobile division during the current quarter, the company as a whole is performing extremely well. In fact, thanks to strong sales of the company’s consumer electronics and TV divisions, LG is now on track to surpass 3 trillion won ($2.66 billion) in profit for the first time ever.
Looking into the future, LG’s revenues are expected to continue rising as the brand enters the fourth quarter of the year. Additionally, if the company can successfully reduce its mobile division losses next year while maintaining its sales elsewhere, the company may well break its own profit record once again within the next twelve months.
Posts: 182; Member since: May 16, 2018
Who still buys LG phones?
posted on Sep 17, 2018, 6:10 PM 1
Posts: 2465; Member since: May 06, 2009
I do. I have a G6 now and I'm considering do I want a G7 a V35, or wait till the V40 launches. There are still some of us fans out there. And to think my fandom was rekindled this time last year when I decided to give the Stylo 3 Plus a try after a year with a ZTE Axon 7. I loved the Stylo 3 Plus even with how slow it was.
posted on Sep 19, 2018, 1:05 AM 0
Posts: 2248; Member since: Feb 14, 2011
I’ll be the optimist here and say I hope LG succeeds because I would rather have more competition than less. That being said, I think LG needs to return to the days of the G2. When that phone came out, it gave Samsung a real run for the money. It was innovative and different. Then in recent years they’ve become more of a “me too” company. I wish they’d bring back that different thinking that made the G2 and V10 so unique and defining.
posted on Sep 17, 2018, 6:27 PM 10
Posts: 1511; Member since: Jul 12, 2016
LG doesn't do much unique, they had boot loop issues tarnish their reputation, and their camera performance seems to get worse instead of better. Maybe they need to stop trying to release so many phones.
posted on Sep 17, 2018, 6:58 PM 4
Posts: 1200; Member since: Jan 24, 2012
They should bring top Android one device (their own ui sux) with bigger battery and price it sensibly...
posted on Sep 17, 2018, 11:51 PM 1
Posts: 25; Member since: Oct 20, 2017
LG need a few things in order to recover. First, it's time. Look how many people still mention the B word (bootloop), even if it's been more than 3 years since it occurred in large quantities of phones. This is a thing of the past, but still there are many people that just won't let go. Second, it's marketing. They have to rev up the advertising and, somehow, get the sites on their side. V30 and newer models are, at least, on par with the best of their class, but they have to do better in a few critical areas. You just can't launch G7 with a 3000 mah battery, no matter how good your energy management is. You just can't launch V40 with this kind of notch, when the waterdrop notches and other innovations in screen ratio (pop-up cameras) are already here. I can understand that maybe the small battery is due to the speaker innovation, but people care more for a big battery than a boombox speaker. LG's wide angle camera is a killer feature, but you have to use better lens and better software.The quad DAC is also irreplaceable for many people, you have to hear to believe it. But there are not many audiophiles out there these days. As far as i'm concerned, the loses are very important, but I'd really like to know if actual sales figures go up or down.
posted on Sep 18, 2018, 1:49 AM 2
Posts: 161; Member since: Jul 24, 2018
The problem with LG is : small batteries, outdated processors and low memory, all the other are ok.
posted on Sep 18, 2018, 2:36 AM 0
Posts: 161; Member since: Jul 24, 2018
LG must put 4000mAh batteries in the midrange series with at least 4000mAh batteriyand in the flagships 5000mAh battery with good ram and affordable price or else market has Xiomi, Huawei with better prices and better specs. If the people in marketing sector of the company, does not realise that, then they are insane. Insanity: doing the same thing over and over again and expecting different results.
posted on Sep 18, 2018, 3:01 AM 0
Posts: 2545; Member since: Oct 09, 2017
You just can't stand out with android so this is the result then. You have two options, have best android phone in the market or compete with price. LG doesn't have either, so that's why we see things like this.
posted on Sep 18, 2018, 5:59 AM 0
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