LG's mobile division lost over $850 million in 2019 as sales plunged
LG tried to reduce costs but losses widened
Smartphones from the South Korean brand generated KRW 1.32 trillion in revenue between October and December. The figure equates to $1.12 billion which, although decent, is down considerably from the $1.41 billion it generated twelve months earlier.
To make matters worse, the declining division also suffered huge losses during the quarter – KRW 332.2 billion, to be precise. It translates into $280 million over in the United States, an increase over the $270 million loss experienced in Q4 2018, despite LG’s claims about “reducing costs.”
Again, despite the company’s efforts to reduce costs, losses somehow increased drastically from the $650 million registered a year prior.
The company still thinks 5G will save its business
LG says its sales declined in the final quarter because of sluggish sales in overseas markets, largely due to a lack of demand for mid-range LG smartphones in North America. The increased expenses, on the other hand, were down to new product launches and efforts to clear inventory.
The South Korean brand is expecting increase demand in developed markets this year for 5G flagships and new form factors such as foldables. It’s also anticipating “severe competition” in the mid-range segment from offensive pricing policies.