What is it like to lose $ 0.8 billion on selling phones? Ask LG

Sorry to read this. LG was once one of the most respected phone manufacturers. Today it is barely doing in this market - and the published financial results give birth only to pessimism.

The LG Group is doing very well. The Korean giant rightly boasts $ 53 billion in revenues in its annual accounts. and operating profits of 2.07 billion. It is true that the latter is also a 10% decrease compared to 2018, but it is difficult to talk about any failure here.

LG owes such good results above all to its great offer in the categories of home appliances and electronics. The Signature product line is particularly popular, which, due to its positioning as a luxury line, provides the producer with an additional bonus in the form of high sales margins. There is only one sadness. Very much for it.

LG's results for 2019. Household appliances are doing phenomenally, while the mobile phone department is sinking in losses.

LG Mobile recorded revenue of 1.12 billion in the quarter, which ended in December last year, so even less than in the corresponding quarter of 2018. This translated into operating losses of $ 0.86 billion. LG, however, is not going to give up, at least not yet. The company is already announcing an offensive both on the price shelf for mass customers and on the luxury shelf in the form of devices compatible with 5G networks.

I must admit that I am a bit hurt by these problems. Years ago, LG was widely regarded as a producer of high quality phones, often with interesting and innovative ideas. Once in my possession I had LG Prada and LG Swift 7 phones and they were - in their class - amazing products. Well, I have similar warm memories about HTC phones. Let's hope the Korean LG will not end up like its Taiwanese competitor,



What is it like to lose $ 0.8 billion on selling phones? Ask LG

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