LG's mobile unit recorded a strong 10% increase in sales in Q1 2017, but the resurgence was short-lived. In its second quarter earnings, LG noted that its mobile unit recorded a loss of $117 million (132.4 billion won) on revenues of $2.39 billion (2.70 trillion won).
LG attributed the decline to weaker than expected sales of the LG G6 combined with an increase in component costs. The G6 is LG's strongest showing in years, but it looks like it wasn't enough to mount a significant challenge to the Galaxy S8.
The South Korean company saw more momentum from its budget devices in the North American market, with sales increasing 13%. LG is now counting on the introduction of a new high-end model — likely the LG V30 — to boost sales in the premium segment next quarter. The company will also launch a new model in the Q series in the coming months.
LG as a whole netted a revenue of $12.8 billion (14.55 trillion won), a 4% increase from the same period last year. Operating income of $588.2 million (664.1 billion won) was 13.7% higher than Q2 2016, with LG's other business units — home appliances, home entertainment, and vehicle components — posting healthy profits. The home appliance unit saw a 12% hike from Q2 2016, and the vehicle components division, which supplies telematics components to the Chevrolet Bolt, saw a 38% increase in sales.
With the mobile unit once again in the red, LG now has to rethink its strategy in the smartphone segment.
We may earn a commission for purchases using our links. Learn more.
E3 2021: Every Quest and PSVR game announced at the Upload VR Showcase
The annual Upload VR Showcase at E3 debuted tons of new games for the Oculus Quest family, PlayStation VR, and PC VR platforms. Here's everything that got announced today!
Kena: Bridge of Spirits preview — An indie darling in the making
Kena: Bridge of Spirits seems to live up the potential players first saw one year ago when the PS5 was unveiled. If that continues to ring true after its launch, Ember Lab will have something special.
The Galaxy Watch 4 is coming soon — here's everything you need to know
Samsung is working on a new smartwatch that'll abandon its proprietary OS for the new Wear OS. We're just not sure if it'll be called the Galaxy Watch 4 or something entirely new! Here's a roundup of what we know so far and what we hope to see in the new Galaxy smartwatch.
The top LG smartphones you need to know about
LG may not be in the phone-making business anymore, but it still has a lot of solid phones at great prices in its existing lineup. Which ones should you care about? We've got you covered!