LG isn’t doing too bad, as long as you’re ignoring its performance in the mobile industry. Certainly, the once-thriving division has lost its appeal in recent years. But underwhelming phones compared to the competition have resulted in poor sales. Both the G6 and V30 were absolutely good phones on paper; however, they just couldn’t help bring the mobile division to finish 2017 strong.
The earnings report for the Q4 2017 as well as the whole year are in, and to no one’s surprise, the company’s mobile division soured an otherwise impressive performance.
LG’s mobile division increased revenue during the quarter to $2.77 billion, but that wasn’t enough to stop it from losing money. The quarterly operating loss came in at $192.33 million. Causing that frightening number, according to LG, were “a challenging marketplace and strong competition from Chinese brands.”
Its 2017 flagship duo, the G6 and V30, are said to have experienced “strong sales.” Just not strong enough to turn around the entire business.
The rest of LG, meanwhile, performed pretty well. Its home appliance, air solutions, entertainment, and vehicle components divisions all turned out to be profitable for the company in the final quarter. LG says overall it was able to turn a profit of $2.33 billion in 2017, its highest in eight years.
All hope is not lost for LG’s mobile division. We recently put together a list of recommendations for the company to consider, and it’s been reported that the G7 won’t actually be called the G7. It appears likely that the new leadership at the helm of the mobile division will rebrand and go in a new direction. Even the decision to delay its 2018 flagship until several weeks after Samsung announces its own product a wise decision to start the year.