LG today reported its Q2 2017 earnings, and while three of the company’s four divisions performed well, the same couldn’t be said for its mobile business.
LG says that its mobile division “saw a challenging second quarter” that included an operating loss of 132.4 billion KRW ($117.27 million USD), which is nearly the same as Q2 2016. This loss was caused by weaker than expected premium smartphone sales, explains LG, as well as an increase in component costs.
Performance in North America actually went well thanks to strong sales of mass-tier phones, says LG.
Looking ahead, LG expects to perform better in the second half of 2017 thanks to the launch of its new Q series devices as well as the release of “a new high-end device in the weeks ahead.”
While LG doesn’t specifically call out the G6 for weak sales, the mention of “weaker than expected premium smartphone sales” suggests that sales of LG’s current flagship aren’t going well. That’s disappointing for the company since the G6 has actually been well-reviewed, but the launch of a new-look Samsung Galaxy S8 with a slim-bezeled tall display like the G6 probably didn’t help sales of LG’s flagship.
Now LG is hoping that its next high-end device will do well. The company is likely hinting at the LG V30, which is expected to debut at an event next month. We’ll have to wait and see if the V30 can make up for the G6’s weaker than expected showing.
LG's mobile division posts $117 million operating loss, weak G6 sales to blame originally posted at http://phonedog.com
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