LG Mobile reports even higher quarterly losses and lower sales, blames the 'market' and 'Chinese brands'

LG Mobile reports even higher quarterly losses and lower sales, blames the 'market' and 'Chinese brands'
LG seemed almost unusually optimistic back in April, reporting a smaller operating loss for its long-struggling mobile division than the previous quarter while expecting the 5G-enabled V50 ThinQ to "create positive momentum" in Q2. Technically, the company never said anything about potentially returning to smartphone business profitability, but clearly, the hope was the April - June 2019 results would continue the (semi) positive trend noticed in the January - March timeframe.

Although the V50 ThinQ 5G was deemed an early box-office hit in LG's homeland, the "Mobile Communications Company" couldn't get any closer to posting a profit during the year's second calendar quarter, instead generating a deficit of around $268 million (KRW 313 billion). That's actually significantly higher than quarterly losses reported at the beginning of 2019 (KRW 203.5 billion), as well as between April and June 2018 (KRW 183.7 billion).

Basically, LG Mobile almost doubled its three-month losses year-on-year, despite revising its strategy... again and taking a number of measures that were supposed to strengthen its "business structure" and improve "global competitiveness." Interestingly, the company appears to be highlighting mainly external factors for yet another disappointing quarterly performance, blaming "stagnant demand in the smartphone market" and "continued aggressive pricing by Chinese brands" for its own failings. In other words, it's not LG, it's companies like Huawei and Xiaomi, as well as the industry as a whole, which hurt its business during Q2 2019.

At the same time, LG does admit marketing expenses related to the launch and promotion of "new models" also contributed to this large deficit, maintaining a positive outlook as "competitive mass-tier smartphones and growing demand for 5G products" could help the company improve its results in the third quarter. Until then, it's important to point out division sales increased from Q1 2019 while falling from Q2 2018 to under $1.4 billion (KRW 1.61 trillion). So, yeah, LG's smartphones are both less popular and profitable than last year. 

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30 Comments

1. midan

Posts: 3097; Member since: Oct 09, 2017

Sgodsell, too bad for LG that we can’t combine all the Androids together ;)

9. Mike88

Posts: 438; Member since: Mar 05, 2019

By his theory that all oems are combined into one brand, it's not LG but android is facing such huge loss even with their TOF camera which is better than the iPhone's mini kinect face ID.. Big loss for android seriously.

27. sgodsell

Posts: 7514; Member since: Mar 16, 2013

Oh, look it's the iPhone gang commenting again on Android related articles. These comment systems wouldn't be the same without some iPhone simpletons like yourselves to make your comments.

29. Mike88

Posts: 438; Member since: Mar 05, 2019

There's no iPhone gang, we are consumers who love to buy the best the market can offer. But there's an android gang who is too stupid to understand that android is an OS and every company is a standalone one instead of one single brand named Android

23. Vancetastic

Posts: 1698; Member since: May 17, 2017

You guys really let him get under your skin, didn’t you? Relax...it’s just the internet.

2. AbhiD

Posts: 851; Member since: Apr 06, 2012

The way they are blaming EVERYONE but Themselves, makes it absolutely clear that they have no willingness or intention to improve at all or even admit their own grave mistakes. It sounds so ironical, but at this point, even mammoth companies like Samsung and Apple are more willing to admit their own mistakes. RIP LG Mobile! They are done, once and for all.

3. foreverNOOB

Posts: 174; Member since: Jul 07, 2017

Lg, i'm your former fan, but about all of this mess that happened to you need to blame yourself. -Lack of brand identity in both design and function -Slow update or none at all -bland design -mid tier camera hardwares -too high prices upon launch -price fallout 3-4X faster compared to competitors -outdated UI not even a small change in 4 years -lower than average battery life -little to none existence marketing -poor customer service -gimmicky innovation -display with unstable quality -etc.

4. bovcrx

Posts: 109; Member since: Mar 06, 2012

Agree with the slow updates

30. db1020000

Posts: 37; Member since: Feb 17, 2019

Oh no god help us because we do not have the latest android is the end of the world!!! Come on people updates are irrelevant, everybody changes their phones even before the next android is released. Nobody is using the essential phone anymore and that thing has been getting updates since 7.0. Also updates make phones slower, this is just hypocrisy. A lot of computers and atm's still use 20 year old windows xp and nobody complains... But why if your money is in there, the most important thing in the world!!! The irony...

6. hjl2345

Posts: 90; Member since: Aug 11, 2018

Pretty much spot on. The only reason why the V50 did so well here in S.K was they had illegally high amounts of rebates that virtually made the device cost zero to nothing. It was a decent move by LG, as it was one of their best selling phones since the G3, but with all that illegal rebate coming out of their pockets, they couldn't avoid being in the red once more.

13. OneLove123

Posts: 1244; Member since: Aug 28, 2018

Their Battey life is great, especaily on my V40. Don't ever believe phonearena's battery test.

15. ShadowHammer

Posts: 209; Member since: Mar 13, 2015

Perhaps they have improved in that department with more recent models. However, having owned a G2, G4, G5, and G6, they all had unimpressive battery life. And that includes after putting in a brand new battery in some.

19. hazard1

Posts: 236; Member since: Feb 11, 2017

Really? I am surprised you are saying the G2 had unimpressive battery life. The G3 I would have understood. But the G2 had, in its time, excellent battery life. Now the G3 wasn't bad (for one of the first 2K screens), and I agree with your assessment of the G4 and G6 (didn't own the G5). But the G2 in my hands sometimes lasted two full days. For me it was worth the absence of the SD slot.

21. foreverNOOB

Posts: 174; Member since: Jul 07, 2017

I don't believe phonearena's battery test either. But once in a while Lg have outstanding battery in some models or some variants of that models. It's maybe differ from the variants you have as my Hong Kong V40 absolutely had poor battery life compared to my other phones at that time (Oppo Find X), it was also clearly poorer than V30+ that still being my secondary phones. But for general, most of Lg phones after G2 have poor battery life no matter what model it is untill V30.

25. ZARTAN99

Posts: 9; Member since: Oct 11, 2018

All of This! I had high hopes for LG but enough of blaming others; look in the mirror at Yourselves!

5. iloveapps

Posts: 909; Member since: Mar 21, 2019

RIP LG.

7. rkoforever90

Posts: 473; Member since: Dec 03, 2011

I dont understand their pricing strategy they launch a half baked phone price it same as Apple and Samsung once it become a flop then sell it for like 1/5th of its original price and by the time nobody cares , and this scenario has been repeating since forever

8. Back_from_beyond

Posts: 1459; Member since: Sep 04, 2015

LG needs to step up their game. In my opinion their phones peaked with the LG G2 and has gone down ever since. The G2 was plagued with software issues though, but an awesome phone to use when it did work right eventually.

10. inFla

Posts: 165; Member since: Aug 17, 2018

What's missing is the media hype. Pixel phones are poor build quality and full of bugs but because they are from Google reviewers are afraid not to love them.

11. Whitedot

Posts: 857; Member since: Sep 26, 2017

It's funny how LG Apple and must be someone else always blame China for it's loses and shortcomings but never points the finger at it self.

12. OneLove123

Posts: 1244; Member since: Aug 28, 2018

Slow updates and their phones look the same. You don't have a lot of cult following like a certain fruit brand, LG.

14. User123456789

Posts: 1084; Member since: Feb 22, 2019

Should focus in american continent, where chinese brands are almost zero. Motorola does it well.

16. J2017

Posts: 75; Member since: Oct 25, 2017

I was a big fan. I had a G3, a V10. They were innovating back then with the wide angle camera and manual controls. My last LG was the G6 which I really enjoyed but they stopped innovating and our now coasting on name and gimmicks... Sad, really.

17. indlvarn

Posts: 17; Member since: Jan 22, 2019

Outdated design, high price, very slow updates, phones coming late. LG should blame only itself.

18. jmonteiro829

Posts: 266; Member since: Feb 13, 2012

Lower the price on release and get your update game right LG... then you will have some success. Bought my wife a G7 and I was pleasantly surprised with the device. I still prefer Samsung (plus they give freebies) mainly because of Samsung Pay and Gear VR.

20. NateAdam8

Posts: 439; Member since: Feb 17, 2012

I've often felt if LG and HTC would combine and create a phone it would sell pretty good.

22. japkoslav

Posts: 1539; Member since: Feb 19, 2017

LG complains? I, as an LG device owner, can complain even more and louder.

24. Vancetastic

Posts: 1698; Member since: May 17, 2017

I do love a good blame game! I’m calling them LOLg now.

26. kanagadeepan

Posts: 1273; Member since: Jan 24, 2012

So Chinese phone cos are the reason for slow and sh!ttier updates to LG phones?? So Chinese phone cos are the reason for launching LG phones at huge price (almost equals to Sammy)?? Yes, it makes sense...

28. AlienKiss

Posts: 241; Member since: May 21, 2019

1I've never used an LG, so I can't say anything about quality build, but from what I've read on the web, LG is one of the worst brands when it comes to updates. Everyone seems to be complaining about it. If LG wants to live and not end up like HTC (though I think they already did), they need to fix the updating process. I use Samsung and the updates are slow, but I have a ton of features already out of the box. Security updates are ok through. I'm on July 1st now. The best brand except Google when it comes to updates is Sony. If Google releases something today, you can bet that tomorrow you'll get it on your Sony. On the other hand, you'll wait 1 year or even more with the rest of the brands..

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