LG Group financial report continues to improve but LG mobile Division still suffer losses

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LG financial continues to improve. However, their mobile device Division is still having problems and continues to lose money.  LG has just announced their financial reports. In this quarter, operating profit rose 16 percent to LG if compared to last year, reaching KRW771 billion.

While overall sales rose 3.2 percent to LG. LG said sales and profit, they are at the highest point at this time. Unfortunately, they still continue to smartphone Division losers, TechCrunch reported.

LG's mobile communications Division and that includes the LG Mobile reported that their back losers. The sales of this division only reached KRW2,07 trillion, down 23 percent compared to the same period last year. While operational losses the Division reached KRW185,4 billion.

In comparison, the home entertainment Division of LG get profit per quarter amounting to KRW407 billion and home furnishings Division get a profit amounting to KRW457,2 billion. Both are the best Division of LG. This is not a strange thing, a few years later, LG Mobile indeed continue to incur losses.

LG Mobile can never get lucky since 2014. This loss has been successfully suppressed when LG do reshuffle leadership in November 2017. However, the sales figures of this Division also experienced a decline, which is something that is worrying.

This time, LG said that the reason their mobile Division continues to lose money because of slowing growth in the global smartphone market and the fall in demand smartphones and middle-class beginner class in Latin America.

While operational losses stemming from its investment in marketing before they launched a new flagship smartphone.


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