12'

LG mobile blames huge loss on low demand for mid-range LG phones

Efe UdinJanuary 30, 2020

South Korean manufacturer, LG, has been struggling with its smartphone business for many consecutive quarters. The company had to pull out of the Chinese smartphone market because of the stiff competition. According to its latest financial report, nothing is changing for LG mobile division. The report shows that LG mobile division loses more than $850 million in 2019. LG mobile said that its losses are due to weak sales in foreign markets – mainly due to insufficient demand for mid-range LG smartphones in the North American market.

LG smartphones generated 1.32 trillion won ($1.1 billion) in revenue between October and December. Although this figure seems quite interesting, it is a big drop from $1.41 billion twelve months ago. LG’s mobile division generated $5 billion (5.97 trillion won) in revenue throughout 2019 but lost as much as $853.4 million (1.01 trillion won). LG’s focus in 2020 is on 5G smartphones for the high-end and mid-range markets.

The company still looks forward to 2020 with hopes of revamping its mobile division. The firm will apply cost-cutting measures and selling 5G smartphones in the mid-range and premium segments. With a plethora of companies getting involved with 5G, it will certainly face some competition even in the mid-range 5G segment.

Gizchina News of the week

Join GizChina on Telegram

In order to reverse the unfavorable situation of continuous losses, LG is now making adjustments in the third quarter of last year. CEO, Jeong Ho-young, who took office in September, is pinning his hopes on OLED panels to get rid of the persistent loss. According to him, the company will expand its production capacity of OLED panels.

LG Display plans to improve its profitability by expanding the production capacity of OLED panels. This is because it believes that demand for OLED panels is increasing in areas such as transportation and interior.

LG DISPLAY WILL SUPPLY AIRCRAFT AND AUTOMOBILES

Jeong Ho-young said at a press conference that the sales volume of OLED panels in the transportation field including aircraft and automobiles can account for 30% of the total sales of OLED panels. Furthermore, car and aircraft manufacturers have also shown interest in using OLED panels. This is a fast-growing field with huge development potential.

LG Display has also begun to expand its business in the transportation field. Jeong Ho-young revealed at the press conference that in January they have started to supply OLED panels to a global car manufacturer. Cars using OLED panels may arrive in the second quarter of this year.

LG Display did not make money last year due to the oversupply of global LCD panels and falling prices. LG began to make corresponding adjustments to LG Display last year.

In the context of an oversupply of LCD panels and falling prices, LG Display now focuses on the OLED field. It will stop producing LCD TV panels in South Korea by the end of this year. However, it will switch South Korea’s LCD TV panel production line to OLED.

Disclaimer: We may be compensated by some of the companies whose products we talk about, but our articles and reviews are always our honest opinions. For more details, you can check out our editorial guidelines and learn about how we use affiliate links.

Source/VIA :

ITHome

About the author

Efe Udin
Efe Udin, a government tech policy expert is a seasoned tech writer with over seven years of tech writing experience. Efe's true passion lies in exploring the intersection of technology, politics, and brand feuds.
With an astute understanding of the power dynamics and competitive landscape within the tech world, Efe delves into the intricacies of how technology influences political discourse and how brand rivalries shape the industry.

Desperate Times
January 31, 2020
Seems stupid to get a new cell phone before 5G is implemented. Why would we buy 4G when the big change is coming????
Z0x9c8v7b6n5m4
January 31, 2020
LG makes good phone’s but I think they should change or come up with a new name instead

mandeep singh
January 31, 2020
I m using LG since 2011 .Their quality is way above expectations .From my point of view there is not a single negative thing I can say about LG.
Battery life never drained. Never freeze and functions are way advance than others.Price wise little less than competitors.
So all I can say everyone should try once and you will never regretted.

SEL
January 31, 2020
I have owned LG phones for 10 plus years now and I’m embarrassed to say these days that I do because of the fact that I’ve come to find out LG does not back up any of their promises not the first year promise not the second year promise and that is disturbing as a consumer so my next phone will not be an LG I’m looking at other options so life’s not good goodbye LG have a great time with your crappy phones

Sam Irfan
January 31, 2020
LG will get into the deeper hole in 2020. As per my personal experience with LG is not good, and extremely bad customer service. I have bought couple of expensive phones LG brand and had serious problem. First of all no one in technical support speak good English I mean communication is very poor, secondly they want to repair the phone more then the new phone price. Why I have to buy a headache for top dollars. No thank you. I love my dollars in my pocket, I work very hard for them.

DrMellieMel
January 31, 2020
I have owned several LG V series phones and loved them… never thinking I would ever go back to Samsung (never an Apple head). But two years ago, one of those software updates insistent reminders (that regrettably impede your phone’s use) overrode my repeated refusals…. after which my V20 was NEVER the same. Constant battery drains, slow responses, screen freeze, long charging times, and frankly, dangerously unreliable at times when emergent calls were necessary…I decided to move on. Good bye LG and good riddance.

C Perez
January 31, 2020
I love my LG Stylo. It’s stable and has all the features I need without the cost of a flagship phone.
Justin Shaddox
January 31, 2020
I love my LG Stylo 4 and 5 so much keep up the awesome work 🙂 LG for life 🙂
Guest
January 31, 2020
I’ve had a number of phones from a variety of manufacturers, including LG. To date I’ve had the LG G4, V20 and the latest, the V40. The devices I’ve owned have proven to be good, quality, feature-filled devices that were often underrated and panned by (mostly) Western reviewers who seem to love to hate LG. If they do something unique, it is “gimmicky”. If they have features that are more mainstream, they are dismissed as “boring”. LG just can’t win. But of course the company’s mobile division does share in the blame with slow OS updates, poor marketing and a less than stellar customer service response when there are issues. I truly hope the manufacturer can reverse course and improve their reputation and return to their position as a challenging competitor to Samsung, Apple and the various Chinese offerings.

Leelea
January 31, 2020
ove love love LG phones ( since LG1 smart phone) but I do not adhere to anything interest 5G so now I hv to focus on getting on the highend one just b4 5G focus or change brands.
Joe Stone
January 31, 2020
Bootlooping garbage and they are surprised that they lose money
Jigar Khandhar
January 31, 2020
Problem is used mobile market is killing it. There are so many used cell phones available from Apple to Samsung that they people want to stick to known brands

Harman Goraya
January 31, 2020
Lg has the best native apps.
Audio:
Best audio recording and editing, far superior to any other phone maker.
Camera:
They were the first to have a dedicated wide angle camera, which is what sold me initially.
I’ve gone from iPhone, to the Google nexus, to the LG G3. Loved it. G4, then one plus was great, went back to the LG v20, loved it the most. Then lg v30 and now trying to decide if I’m going with the one plus 7t or the v50.
The camera quality and super fast charging on the one plus 7 are attractive. But I think I’ve always just loved LG’s audio recording apps and having a headphone jack that I will stick with them.

Albert Rossetti
January 31, 2020
Love my LG STYLO 4 and 5!!! Excellent quality, performance, reliability without breaking the bank.
About 4 months ago, my STYLO 4 slipped out of my pants back pocket directly into the toilet bowl, completely submerged in clear water. Immediately retrieved and it continued working flawlessly without skipping a beat!!! Never powered it off or put a blow dryer to it!
Guest
February 1, 2020
Because like 4G it will take several years for wide spread implementation.

Eso Teric
February 1, 2020
Well if they only made a better software for their phones they’d be in a better situation. Two months into using lg g7 – a flagship model and you know what, it stutters like hell. Yeah a two years old Snapdragon chip stutters like he’ll and you know why? Because of that stupid AI that LG put whose task is to TRY and figure out your needs and adjust the cpu governor accordingly. Of course that idea failed miserably, but the problem is that LG never left a choice to the end user – do you want to disable AI or not so users are just stuck with it unless they root their phones. Also, camera software, while rich in features is really bad with the quality of photos. Too much and too aggressive noise reduction just gives bad quality of images. Like every LG phone was just rushed in instead of developed to its true potential

Bone Datt
February 1, 2020
LG hasn’t figured out how to market their best features on their mobile devices. They give up on their innovation way too quickly, before it matures and consumers have had the opportunity to adapt. They make solid devices (I have the G8), and have the potential to be very competitive. They just need to figure out how to market their phones and stop removing features when they don’t lead to instant record sales.

Guest
February 2, 2020
Well, most of their phones aside for a select few were extremely gimmicky and dogcrap. Terrible features, air gestures were a joke. Huge notch. G3 V20 were great. They still rock a huge notch on their current flagship phones. Most of every manufacturer has moved on to a teardrop or a cutout of some sort or better yet no notch. Their worst offense and has always been their cameras, they have the worst cameras in the market. They also have a reputation for getting updates last and updating the least. The only current phone out right now that they offer that is actually good is the G8X and they did that through their own innovation and not following everyone else with regards to the killer dual screen/battery extra.

Jennarow
February 2, 2020
My very first phone was an LG, right up to the one I’m using today. I’m due for an upgrade to a new phone and I’m really hesitant to get another LG phone. The main reason is because of the reason that LG doesn’t seem to follow through with their promises for Android and other updates. They seem to only roll out updates on their “newest” models and leave the older ones in the dust. When ppl are spending upwards of a thousand dollars for a phone, it should be maintained as promised. As on Feb. 2020 they’re only JUST starting to update to the newer Android is..just in time for the NEWEST os, and then they’ll just continue to always be behind the competition.
I think that maybe ppl are getting tired of finding out their LG phone won’t be included on the VERY short list of updated devices. 🤷
Techsmith
February 3, 2020
They have made alot of angry owners with the phones bricking..stone dead. i have had 2 myself after just over a year ..no warranty!. Problems like this turned many away from LG

Gizchina News of the week

LG DISPLAY WILL SUPPLY AIRCRAFT AND AUTOMOBILES

Efe Udin

Today in Home