LG has posted its mobile business financial report for the second quarter of 2019, and it is disappointing. According to the report, sales went down 21.3% when compared to the same period last year. On a quarterly basis, however, they went up 6.8%. This only goes to show how far they performed in the quarter in comparison.
In Q2 2019, LG mobile’s sales were KRW 1.61 trillion (about 487.2 billion Naira). In the same period, the company’s operating loss was KRW 313 billion (about 95.3 billion Naira). Between April and June, the company started relocating its smartphone production to Vietnam. This, of course, was a huge expenditure.
Another factor that could be responsible for the disappointing records is the competition from Chinese companies. This especially comes in the form of “aggressive pricing” from these companies.
It is also of note that earlier, LG fell behind Samsung in the manufacture of smartphone OLED displays. The Korean company was reportedly turning to China’s BOE instead.
In spite of the decline in sales, LG remains positive. The company expects an improved performance in Q3 with the introduction of competitive mass-tier smartphones and the growing demand for 5G products.