LG’s mobile division lost over $700 million in 2018
The company as a whole, however, saw record revenues of $54.4 billion.
The smartphone industry as a whole is seeing a slowdown in sales right now, and one company that’s not impervious to this shift in the market is LG. LG’s mobile division has been struggling for a while now, but thanks to the company’s official financial report, we now know just how poorly it performed last year.
In 2018, LG Mobile Communications Company (the division responsible for smartphones), reported total revenues of $7.08 billion. While that sounds pretty good on its own, that still resulted in a total operating loss of $700.65 million for the year. Similarly, mobile sales decreased by 16% compared to Q3 2018 to $1.51 billion for Q4.
Those aren’t great numbers, but LG says that:
The mobile division’s business structure showed improvement as a result of better material cost controls and overheard efficiencies based on the company’s platform modularization strategy.
Going in 2019, LG also notes that:
LG’s mobile division will push 5G products and smartphones featuring different form factors while focusing on key markets where the LG brand remains strong.
Despite the poor performance of mobile products, LG as a whole actually had a pretty great year. Overall, the company reported record revenues of $54.4 billion and a total yearly profit of $2.40 billion — an increase of 10% compared to 2017. According to LG, these numbers are a result of “record profitability from appliances and home entertainment products.”
Did you buy an LG phone in 2018? Do you plan on buying one in 2019? Let us know in the comments below.
Business Analyst at Tunayo Business Magazine | Follow me on Twitter