LG announces another decline in smartphone sales
Another quarter, another disappointing result for the mobile business at LG Electronics. The company posted its financial report for the past three months and the Mobile Communications Company said sales were down 21.3%, compared with the same period last year. At least they went up 6.8% on a quarterly basis, but the reason for the poor results are the competitors from China and their aggressive pricing.
Speaking in numbers, the Q2 2019 sales were KRW1.61 trillion ($1.38 billion), while the operating loss was KRW313 billion ($268.4 million) due to the higher marketing investment to support the launch of new models. The Korean company also started relocating its smartphone production to Vietnam, which was another big expenditure between April and June.
Expectations for the market are missing, but LG remains positive and expects the introduction of competitive mass-tier smartphones and growing demand for 5G products to introduce an improved performance in the third quarter.
The overall financial results for LG Electronics revealed the company is 4.1% up in sales while 15.4% in operating income – the home appliance and business solutions success was not able to offset the small income from home entertainment products and the loss from vehicle components and mobile communications.