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LG is doing very well, the mobile division not so much

LG is doing very well, the mobile division not so much

As is customary for many companies at this time of the year, LG published its financial results. The manufacturer had excellent results in 2018. Very good figures for the South Korean brand, but they must not hide the fact that its mobile division is suffering enormously and is still seeing heavy losses, despite a slight improvement compared to last year.

The analysts were waiting for the figures. LG is doing well, very well even. In 2018, the manufacturer generated an operating profit of $2.4 billion, up 10% year-on-year, with sales of $54.4 billion.

But these results should not make us forget the "difficulties" encountered by the group's mobile branch. These very good figures are mainly due to the success of the group's smart home division, which recorded an exceptional profit of $1.35 billion.

The mobile division recorded a loss of $700 million. LG has since indicated that the restructuring decisions taken are beginning to take effect. The development of 5G and folding smartphones are other points of hope for the South Korean manufacturer.

AndroidPIT lg g7 0007
The LG G7 ThinQ did not meet with great popular success in 2018. / AndroidPIT by Irina Efremova

LG is confident but competition from OnePlus, Samsung or Xiaomi complicates its task. The launch of the next LG G8 and 5G smartphone next month in Barcelona should help the brand to restore its image. Finally, LG could continue to launch affordable phones in emerging markets to increase its revenues.

How do you feel about LG's figures? Were you ever a fan of the manufacturer?

Source: LG

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  • The decline of LG's mobile division should come as no surprise given the company's multiple missteps including poor quality control, inadequate marketing strategies and untimely software updates. I've owned a number of LG phones, including the G4 and V20. Both of these proved to be good devices that performed well and lasted (in my experience). I was spared the problems other owners experienced like the boot loop debacle and buggy performance after the upgrade from Nougat to Oreo finally arrived. LG once produced unique devices with features like swappable batteries and remote control capabilities. But after the V20 the division decided to become a Samsung/Apple clone and ditched the features that made their products stand out from the herd. With poor updates and the shameful way it treated its loyal following after the boot loop scandal, the company's reputation was damaged. It may have been salvaged if they had gone back to producing reasonably priced, quality devices with the unique features that formed their niche. The latest flagship, the V40 is a good phone (which I bought at a great discount off of Offer Up) but overpriced with camera issues and last year's software. How are you going to compete with the likes of Samsung, Apple as well as the well equipped Chinese mid-rangers with a product that comes with an inflated price and flaws in its stand out feature? Go back to your roots LG.