LG Mobile suffers $132M loss thanks to flagship G5 smartphone
LG announces its Q2 2016 report today and, in short, its mobile business is still some way from breaking even. While LG Electronics — the entire group — posted an operating profit of KRW 584.6 billion ($503.10 million), up 140 percent on the previous year, LG Mobile dragged things down with a KRW 153.5 billion ($132.10 million) loss for the period, though that is a 35 percent improvement on the loss in Q1.
As Flagship phones are often make or break in the mobile industry. Just ask LG. The Korean company’s G5, an ambitious effort at modular devices, continues to weigh on the company’s financial performance this year. LG shipped 13.9 million devices over its most recent three-month period, that’s higher than the 13.5 million it recorded in the previous quarter but lower than the 14.1 million from one year ago.
The company said the quarter’s loss “reflected increased marketing expenditures and somewhat slow initial sales of G5 smartphone.” LG didn’t give an exact figure for G5 sales, but it did convey its hope that a slate of new lower-end devices — the new V series and more devices within with K and X series — can reverse its fortunes in the next quarter.
This most recent quarter’s extraordinary financial gain and KRW 14 trillion ($twelve.05 billion) in profits — up just .5 % 12 months-on-12 months but 5 % quarter-on-quarter — is predominantly down to its home appliance and air answers and property entertainment units which pulled in record revenues.
Guaranteed, air conditioning might not be as attractive as smartphones — really don’t say that to Xiaomi — but with a KRW 433.7 billion ($373.24 million) financial gain on revenues of KRW 4.70 trillion ($4.04 billion), the division was LG’s stellar performer courtesy of increased revenue in Europe, Korea and the relaxation of Asia.
Similarly, the property leisure division carded an working profit of KRW 356.7 billion ($306.97 million) on revenues of KRW 4.sixteen trillion ($358 billion).
Via: | TechCrunch |
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Source: | LG Newsroom |
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Image Credit: | BGR |
