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Slow global smartphone market has seen quarterly sales decline year-on-year
LG Electronics has announced record high first-half sales and operating profits in its latest financials report despite the mobile division posting losses for the second quarter.
There were increases of 3.2 per cent from the first half of 2017 with £21.25 billion (KRW 30.14 trillion) in revenue and £1.29 billion (KRW 1.88 trillion) in operating income, which rose 18.5 per cent year-on-year.
In terms of second quarter figures for 2018, LG reported consolidated global sales of £10.5 billion (KRW 15.02 trillion) and operating profits of £542.6 million (KRW 771 billion).
The second quarter sales rose 3.2 per cent, with operating profits increasing 16.1 per cent year-on-year from 2017.
Second quarter figures were helped with strong sales from home appliances and air solutions and premium home entertainment products.
Stagnant mobile market
However the LG mobile communications division posted sales of £146.4 million (KRW 207.2 billion) but an operating loss of £131 million (KRW 185.4 billion).
Year-on-year sales for the second quarter has declined as a result of a slowing global smartphone market and a decline in the mid to low end smartphones in Latin America.
With competition expected to increase in the smartphone market, LG has said it is seeking to improve its business structure and increase sales of the LG G7 ThinQ and LG V35 ThinQ flagship smartphones across key markets.