LG Mobile continues losing streak with big Q2 deficit and dipping sales

LG Mobile continues losing streak with big Q2 deficit and dipping sales
The year’s second quarter was not a rosy period for future iPhone supplier LG Display, and although LG Electronics broke multiple financial records between April and June 2018, LG Mobile had another three lousy months as well.

In case you’re having trouble following, let us highlight LG Display and LG Electronics are separate LG Corporation daughter companies, while LG Mobile is just a small part of an overall profitable LG Electronics puzzle.

We’re talking about one of five major divisions, alongside Home Appliance, Home Entertainment, Vehicle Components, and Business-to-Business departments. Obviously, this is the division in charge of manufacturing, distributing and advertising smartphones like the LG G7 ThinQ and V35 ThinQ, which are still expected to “improve” the outfit’s “business structure” down the line.

The two high-enders haven’t proven extremely popular yet, contributing to an operating loss of close to $172 million for the LG Mobile Communications Company during Q2. That’s up from a deficit of around $117 million a year ago, and $127 million or so in the January - March 2018 timeframe.

Believe it or not, LG Mobile hasn’t posted a quarterly profit in four years, and perhaps most worryingly of all, divisional sales are also on the decline. The “slowing growth of the global smartphone market” is blamed for a dip in earnings from $2.39 billion to $1.92 billion year-on-year, although the chaebol also points the finger at its “mid- to low-end” portfolio’s performance in Latin America.
 
With all due respect, it doesn’t feel like LG’s phones have a problem just in one region around the world. The question is how long will “premium” home entertainment products and home appliances and air solutions be expected to “offset” the losses of the G, V, K, and Q-series handsets?

source: LG

Related phones

G7 ThinQ
  • Display 6.1" 1440 x 3120 pixels
  • Camera 16 MP / 8 MP front
  • Processor Qualcomm Snapdragon 845, Octa-core, 2800 MHz
  • Storage 64 GB + microSDXC
  • Battery 3000 mAh(20h talk time)
V35 ThinQ
  • Display 6.0" 1440 x 2880 pixels
  • Camera 16 MP / 8 MP front
  • Processor Qualcomm Snapdragon 845, Octa-core, 2800 MHz
  • Storage 64 GB + microSDXC
  • Battery 3300 mAh(20.5h talk time)

FEATURED VIDEO

12 Comments

1. darkkjedii

Posts: 30836; Member since: Feb 05, 2011

Selling screens to Apple, could really help LG’s bottom line.

5. Dr.Phil

Posts: 2299; Member since: Feb 14, 2011

Unfortunately, both their electronic and display divisions also posted quarterly losses. LG Display slashed 2.7 billion in investment through 2020 due to what they see as a decline in global smartphone sales.

2. matix73

Posts: 36; Member since: Apr 10, 2017

Comparing to $1.92 billion revenue, a loss of $172 million is still not that much.

3. Busyboy

Posts: 731; Member since: Jan 07, 2015

A company can have $100+ billion in revenue. If they're not earning anything it doesn't mean a thing.

7. Awalker

Posts: 1962; Member since: Aug 15, 2013

Revenue means nothing if you're not making a profit.

4. fyahking

Posts: 1146; Member since: Jan 28, 2015

Notch gonna buy one.

6. robocopvn

Posts: 504; Member since: Mar 10, 2010

No surpise. Lg G2: touchscreen issue Lg G3: crack microphone and IR hole Lg G4: sudden death Lg G5: burn in screen Lg G6: use old SOC Lg V10: sudden death Lg v20: burn in screen Lg v30: bad OLED screen I stop buying any LG phone from V20

13. Alex2017

Posts: 32; Member since: Nov 08, 2017

I'm really sorry for this site that a kid and a troll will write any nonsense here. Why are you so nonsensical! lg g4 and v10 shudden died what I did not understand, but as far as everyone knows, the oled panel v30 is the best oled panel and has no problem. Also, the g5 panel is burned? You really got a big joke so much so that we all know only super amoled burn in and the red halo comes in. Not the g5 panel, and the rest of the things you said were nonsense, do not lie so much!

8. andrewc31394

Posts: 281; Member since: Jun 23, 2012

I'd still be using an LG device if they updated their devices consistently and applied a decent thermal paste to their devices' chipsets

10. cornerofthemoon

Posts: 619; Member since: Apr 20, 2010

Pity as I have always had good luck with LG phones. Unfortunately it looks like its pretty much an Apple/Samsung world for the most part.

11. johnh3

Posts: 142; Member since: Aug 23, 2012

I dont think it will be only Apple/Samsung. LG, HTC and Sony might dissapear. But then you got BBK Electronics (Oppo, Vivo and OnePlus) Xiaomi, Huawei/Honor. HMD Global/Nokia is on the rise to. Atleast in the european market they will grow.

12. Alex2017

Posts: 32; Member since: Nov 08, 2017

I'm really sorry for the site that a young fellow and troll are the authors of this article, which puts every fake news on your site, firstly, as the lg company itself states in its report, its losses for this 3 months only and only Because of the cost of advertising and marketing for its new flagship smartphones, it's g7 thinq and v35 and q7, which will be close to profitability in the next quarter, with the introduction of several flagship and upgraded flagships in the coming months, as well as the provision of early and microlcd for apple things are getting much better. Why did not LG profit four years of mobile profit? What are the nonsense that you put on the site! lg Just since the time of v20, there is little loss, that is, about two years, if you prove right, prove that lg mobile has lost four years of time, lg only sells in some areas, and you are not in most of the problem areas, for example, you America is among the three best-selling brands

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.