LG hopes the V50 ThinQ 5G will 'create momentum' after another bad quarter for its mobile business

LG hopes the V50 ThinQ 5G will 'create momentum' after another bad quarter for its mobile business
This is certainly not the best time to be in the business of manufacturing and selling smartphones (unless you're headquartered in China, of course), as everyone from Apple to Samsung to Google continues to struggle amid declining numbers for the overall global market. Then again, LG's troubles began back when the mobile industry as a whole was still thriving, so it's definitely no surprise to see the tech giant's smartphone division generate another big quarterly loss between January and March 2019.

While LG is trying to focus on the positive, highlighting the latest operating deficit of its limping Mobile Communications Company has "narrowed" from Q4 2018, it's equally important to note the Q1 2019 result is actually worse than the one reported this time last year. Namely, LG Mobile lost the rough equivalent of $127 million (KRW 136.1 billion) back during the first quarter of 2018, a figure that escalated to a little over $180 million (KRW 203.5 billion) in the January - March 2019 timeframe.

That's obviously not a very encouraging trend, although LG insists its smartphone business rebuilding plans are going well. As part of this strategy, the company is relocating certain crucial manufacturing operations from its Korea homeland to Vietnam, a move expected to "improve profitability and global competitiveness" as early as this year's second half.

Interestingly (and worryingly for LG fans expecting a swift rebound), there's no mention in the company's latest quarterly financial report of the recently released G8 ThinQ. Instead, LG is counting on the 5G-enabled V50 ThinQ to "create positive momentum in the second quarter." Unfortunately, "hardware, software, and network optimization" caused an unwanted delay for a handset that seems unlikely to generate a lot of mainstream buzz, considering its prohibitive price and the modest deployment of 5G technology so far.

In addition to profits, overall LG Mobile revenue was also down in Q1 2019, from around $2 billion and $1.5 billion in Q1 and Q4 2018 respectively to only $1.34 billion (KRW 1.51 trillion). Thanks mainly to the home appliance business, LG Electronics was able to report consolidated sales of more than $13 billion and operating profit of roughly $800 million. While those numbers also declined from the first quarter of last year, they're arguably indicative of a healthy business mix capable of offsetting certain divisional losses.

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15 Comments

1. mdorno

Posts: 47; Member since: Aug 17, 2011

Ummm, quit putting out tired and rehashed designs. I'd personally take larger bezels than a notch design, hence the reason I'm still rocking a Oneplus 3T.

2. shield

Posts: 852; Member since: Sep 12, 2015

LG need new smartphone, new name, new design without ugly notch or hole, need more better spec and solid Price! LG X10? New name.

8. TBomb

Posts: 1553; Member since: Dec 28, 2012

Need to drop the number to start too. just LG X. Then depending on it's success, you can start thorwing numbers in there.

3. Guseinguliev

Posts: 118; Member since: Mar 04, 2019

We must do normal smartphones and not stupid. Why does a man in 2019 need a flagship with a scanner in the ass? It is necessary to create a smartphone that will be able to compete with the iPhone xc in power in size, etc.

4. Ichimoku

Posts: 173; Member since: Nov 18, 2018

I'm laughing just reading the title of the article

5. Whitedot

Posts: 824; Member since: Sep 26, 2017

Is this official statement or fictional "LG hopes the V50 ThinQ 5G will 'create momentum' after another bad quarter for its mobile business" ?

6. redmd

Posts: 1941; Member since: Oct 26, 2011

Just lower the price LG. And don't compete with the top dogs. It's the price that will get people's attention.

7. Methlab

Posts: 23; Member since: Apr 19, 2019

Plus Android One maybe, not a big fan of LG UX

9. MrMalignance

Posts: 300; Member since: Feb 17, 2013

@redmd: you may have hit the nail on the head. I believe they can come out of this. It's a spiral, but not a tight death spiral like HTC is going through. If they do their own thing and try to put out current, relevant innovation/design, they can grow. As for the article: we need to stop constantly talking about things like delaying releasing the v50 as a bad thing. They didn't feel it was optimized enough. Would you rather they put it out half finished? We live in a time where people buy new phone roughly every 3 years or longer, a few months isn't going to kill anyone. Lastly, they're haven't been any real issues (except that TMobile bootloop issue) with LG in some time, yet people can't let go of the past. I had an s5 that bootlooped on me and I had to send it back 3 times. I don't think that me and anyone else should assume that's all Samsung phones. It's honestly kind of dumb to assume that all lg phones will bootloop.

10. Venom

Posts: 3684; Member since: Dec 14, 2017

LG hasn't made a good phone since the V20. When I look at LG phones, I think to myself "who would want that phone?" LG was doing good until the G5 and the Bootloopgate ordeal.

11. rush2112

Posts: 4; Member since: May 19, 2016

Says someone that hasn't used any of the latest LG's. While your at it, can you give me an honest review on a Chevy Corvette? Seems you know everything about items you don't own, so comment away....

12. Venom

Posts: 3684; Member since: Dec 14, 2017

Stop crying. Maybe when LG actually makes a compelling phone then I will give them another shot.

14. rush2112

Posts: 4; Member since: May 19, 2016

No crying here. All I'm saying, is bring REAL data to your argument, not what you read or assume based on devices 4 years ago....

15. MrMalignance

Posts: 300; Member since: Feb 17, 2013

Rush2112 has a point. LG has been throwing out bootloop free stuff for a bit. The T-Mobile bootloop issue was for the g8, but only the software update for that carrier. I myself experienced a bootloop with the Galaxy S5(as stated above) and found others who had too. That didn't leave me constantly talking trash about their phones. Bootloops are the exception to the rule, and exceptions aren't strong argument points. Btw, personal attacks don't help either. I respect that you have an opinion and are giving it, but when you try to push your opinion over everyone else's facts, it becomes an empty argument. Also it's nice to see that you are keeping an eye out for any of their devices that you might find to be compelling. That's a great way to look at it

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