The LG is a profitable business, thanks to the industries of TV and consumer electronics, but there is a part of a company that is so successful: the division of the cell builds up to an operating loss of US$ 2,67 billion, between the beginning of 2015 and the third quarter of 2019. The CEO, Brian Kwon, promises to change this situation by 2021, with further launches of smartphones and “some factors of surprise”.
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According to the Korea Times, Kwon said at the CES trade show: “the mobile division of LG Electronics to be profitable until 2021; I can tell you that we will be able to make that happen, as LG Electronics will expand our line-up of mobile phones and will use constantly, the new models coupled with the factors of surprise and entice the consumer.
The CEO did not reveal the exact advantages are of these, but it may be something crucial: in a review of the LG G8S ThinQ, In Rosemary says in the title, that he has “a lot of performance, and a few differentials.” The smartphone is disappointing in some ways: in the camera, it was back to the Galaxy S9+ and the iPhone X, in the tests on DxOMark.
Of course, it is important that the unique features are also useful for the G8X ThinQ it has two screens, but “the advantage of the second screen, it is almost cancelled by an operating system that is not yet ready for this,” and he concludes Paul Higa on the review of the device.
The LG does not have a profit in mobile phones since 2014
The company has not yet announced the financial results for the year of 2019 at the latest; this should be done by the end of January. However, it believed that it had an operating profit of$ 85 million over the past year, well below the$ 233 million expected by analysts, in the market — and the blame, in part, it may have been in the mobile division.
To cut costs, the company has transferred its production of smartphones, for Vietnam; rather, it is that they are made in South Korea. These devices are also manufactured in Brazil, where the company is located in a “solid third place” in the sale of mobile phones, according to Counterpoint Research. On the front of it, they are Samsung, and Motorola.
However, I sell very smartphone does not mean you have to profit from it. As you can see below, the mobile division of LG has been suffering losses since the year 2015:
- For 2013: profit for the 64,45 million
- 2014: a profit of US$ 295,29 million
- 2015: loss of US$ 103,17 million
- 2016: loss of US$ 1,09 billion in
- 2017: loss of US$ 192,33 million
- The 2018 cost of$ 700,65 million
- 2019 at the latest (as of the third quarter: loss of$ 584,45 million
It bears repeating that this is the bottom line only, from LG Mobile, it is not LG Electronics, as a whole, the company’s profit in the other sector in which it operates, such as Televisions, household appliances, and solar panels, among others.
Information: the Korea Times, Engadget.