Mobile revenue up quarterly, down yearly
LG’s mobile division continued to lose revenue in Q2 2019, as sales fell due to slowing demand for smartphones and Chinese competition.
The LG Mobile Communications Company saw Q2 2019 sales of KRW1.61 trillion (£1.12 billion), which was a year-on-year decrease of 21.3 per cent.
The business reported an operating loss of KRW313 billion (£217 million), although sales increased 6.8 per cent on Q1.
In a statement, the company cited “stagnant demand in the smartphone market and continued aggressive pricing by Chinese brands” as reasons for the decline.
It added that the operating loss was incurred by “higher marketing investment to support the launch of new models and additional costs related to relocating smartphone production to Vietnam”.
LG hopes for an improved third quarter performance through growing demand for 5G products and “the introduction of competitive mass-tier smartphones”.
In wider company news, LG’s business solutions and vehicle component sales saw large increases, while overall revenue for Q2 stood at KRW15.63 trillion (£10.85 billion), an increase of 4.1 per cent year-on-year, although operating income was down 15.4 per cent.