LG enjoyed a strong start to 2017, with a 10 percent increase in sales thanks to its flagship G6 smartphone. But the demand didn’t last long. Sales slumped during the second quarter of the year, leading to a loss of $117 million (132.4 billion won) on revenues of $2.39 billion (2.70 trillion won).
LG blamed the decline on weaker than expected demand for its latest handset, which now faces incredibly tough competition from the Samsung Galaxy S8, with its curved glass and Qualcomm’s latest Snapdragon 835 processor. In addition, recent rumors have pointed to the upcoming arrival of the V30, which is expected to be even more impressive.
Despite being LG’s best smartphone in years, then, interest in the G6 has fallen. But it’s not all bad news for the South Korean company, which posted a net revenue of $12.8 billion (14.55 trillion won), a 4 percent increase over the same period last year. It also saw operating income of $588.2 million (664.1 billion won), which is an increase of 13.7 percent year-over-year.
LG saw increased demand for its more affordable smartphones in North America, where sales increased 13 percent. Its home appliances, home entertainment, and vehicle components businesses also saw healthy profits due to sales increases.
We’ll have to wait and see whether the V30 can provide LG’s mobile division with another boost, but it certainly won’t be easy. The handset will be up against Samsung’s new Galaxy Note 8, as well as next-generation smartphones from Apple, which are expected to bring big changes.