LG Electronics has announced its operating profit estimates for the second quarter of 2017. Judging by the reported preliminary April-June profit of 664 billion won ($574.49 million), it is estimated that the tech giant will record a year-over-year increase of about 14%.
While this growth is by no means meager, the financial results actually fall beneath the expectations of several market analysts, who forecasted that the South Korean company would post a net income of about 755 billion won or $654 million.
Moreover, it appears that the main reason for LG's stunted profits is the firm's mobile division. Dongbu Securities analyst S.R. Kwon has commented on the situation:
LG G6, as well as subdued sales figures for its other smartphone models.If this information is accurate, this would mean that LG's mobile business is operating at a loss for the 9th straight quarter, which could be attributed to the increased marketing spending for its latest flagship, the
Still, this doesn't mean that the G6 isn't a successful product for LG's mobile division, especially when compared to last year's modular G5. However, it looks like the company needs to find a way to spread this popularity to some of its other models in order to become self-sustainable.
Meanwhile, LG's "local" rival Samsung could very well record its most profitable quarter ever, with some speculating that Sammie might even earn more than Apple in Q2 2017.