LG has been struggling to keep up in the smartphone space for a few years at this point, and things just seem to keep getting worse. This week, LG has revealed an even bigger loss through its Mobile division.
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Announced in a press release on Thursday, LG has revealed its Q2 financial results. Overall, the company is in good shape with sales up 3.2% at $13.9 billion and overall profit up 16.1% at $715.1 million. That’s thanks in larger part to the company’s home theater and appliance divisions.
LG’s Mobile division, though, continues to struggle. Sales came in at about $1.92 billion, but the division recorded a loss of $171.95 million. That’s a bigger loss than the same quarter last year when the company reported the Mobile division $117 million in the red. LG attributes the continued struggle to slowing growth in smartphone sales as a whole, as well as stiffer competition in the flagship space.
LG says it doesn’t expect things to improve in the second half of the year either. The company will apparently focus on improving the business structure as well as increasing sales of the LG V35 ThinQ and LG G7 ThinQ. It’s unclear if LG still intends to launch the LG V40 ThinQ at this point.
The LG Mobile Communications Company recorded sales of KRW 2.07 trillion (USD 1.92 billion) and an operating loss of KRW 185.4 billion (USD 171.95 million). Quarterly sales declined from last year due to the slowing growth of the global smartphone market and a decline in mid- to low-end smartphone sales in Latin America. The second-quarter operating loss was largely due to contracting sales and increased marketing investments to support new flagship smartphone launches. With competition in the premium smartphone category expected to intensify and growth to remain stagnant in the second half, the company will seek to further improve its business structure and increase sales of the new premium LG G7 ThinQ and LG V35 ThinQ flagship smartphones in key markets around the world.