LG's 2017 financial results are encouraging, but mobile division still recording losses

LG's 2017 financial results are encouraging, but mobile division still recording losses
LG Electronics has revealed its financial results for 2017. The Korean manufacturer has recorded full-year revenues of $55.4 billion, the highest in the company's history and an increase of 10.9% compared to 2016. Operating profits stood at $2.23 billion. This makes 2017 LG's second most profitable year, with 2009 still sitting at the top spot.

These results are undoubtedly great news for LG as a whole, but the success is mainly driven by strong sales of premium OLED TVs and home appliances. The company's smartphone manufacturing branch is still in the red, having recorded losses of $192.3 million for the last quarter of 2017. This result is worse than the $187 million loss predicted by analysts. In its press statement, LG cites the "challenging marketplace and strong competition from Chinese brands" as two main reasons for its lack of success in this area.
 
Hwang Jeong-hwan was recently appointed as CEO of LG mobile in a bid to turn the division's fortunes around. The new executive is reportedly trying different strategies such as stopping the practice of doing smartphone announcements in unison with rival companies and only unveiling new models "when it is needed". The development of the LG G7 was also supposedly restarted, meaning that we're probably not going to see it announced at MWC 2018. Instead, we might see an improved version of the LG V30 breaking cover in February. It will be interesting to see whether these changes will pay off.

source: LG

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8 Comments

1. alterecho

Posts: 1106; Member since: Feb 23, 2012

This most probably does not include the V30 sales.

2. Paranoid_Android unregistered

Even if it did include the V30 sales, Lg made the phone available after a huge delay. The enthusiasm of potential customers cooled down, I see a lot of ppl in the office with iPhone X, and not even a single Lg, except one guy with a V20. I like Lg phones, but no enough marketing, no availabilit, big delays, and not competitively priced.

7. Sparkxster

Posts: 1213; Member since: Mar 31, 2017

The huge delay is why I didn't get the V30. I was excited when it was first announced but LG not providing a release date is why I ended up getting the S8+ instead of the V30.

3. EC112987

Posts: 1215; Member since: Nov 10, 2014

I finally saw a V30 @ a TMobile store and wow that phone is beautiful. It's sad they released it so late after the announcement.

4. mootu

Posts: 1500; Member since: Mar 16, 2017

I like LG but they are their own worst enemies. They launch early trying to beat Samsung to the punch but don't deliver till a couple of months later. Zero advertising. Too much regional bull$hit. And pricing, don't know about other areas but here in the UK they price their phones really high, for example when the G6 finally arrived it was £50 more than the S8.

5. Jrod99

Posts: 715; Member since: Jan 15, 2016

Still haven’t seen one but haven’t really look lately. Co worker bought his wife one.

6. Rangerboy505

Posts: 22; Member since: Sep 09, 2016

Since Sony doesn't really care about phone at the moment, they should make a small one and steal the market there.

8. philip_1

Posts: 46; Member since: Jul 28, 2009

When it comes to marketing LG is doing awful,,They are making so GOOD cellphones in every aspect but they don't know/care to promote them.. I got V30+ last week after long time with my G6. This cellphone really deserves better share in the market.But from one side the bad marketing from LG and from the other side most of Web pages are too much Samsung-Apple friendly and they are just also spreading wrong information leading the people even ore far way for LG!Almost none of the negative comments I could verify.,(Better Screen, Better Low Light Performance/Camera,Battery life)All are wrong!!I handed over my brand new Note 8 to my wife, it doesn't fit in my pocket anymore! The only way someone to appreciate LG cellphone is to buy and work with it by him self... By the way in order not to be misunderstood, I owned Samsung devices, Apple and LG as well.

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