As usual, LG shared its Q1 results containing the combined results of its businesses. For the second time in its history, the South-Korean conglomerate has exceeded KRW 1 trillion ($826.727.000,00) in the first quarter of the year. The company’s overall revenue is KRW 14.73 trillion ($12.4b).
LG’s Home Appliance & Air Solution and Home Entertainment companies achieved pretty good results resulting in a revenue of KRW 8.39 trillion ($6.95b). Unfortunately, LG Mobile still struggles to stand in this competitive market. It reported just KRW 998.6 billion ($843.9m) in sales. The result is pretty bad considering that it had an operating loss of KRW 237.8 billion ($200.96m). Operating losses are the values spent with marketing, development among other things. Interestingly enough, the results are better than last year’s Q4, but that is not enough.
Gizchina News of the week
The Korean company sold 34% fewer smartphones in Q1 of 2020 if we compare it with the same period last year. Of course, this is also an effect of the supply disruptions from Chinese companies. However, LG isn’t the only company to suffer from the COVID-19 pandemic. Smartphone sales are expected to decline this year. After all, customers will be spending more in essential goodies during the next few months.
Now the company’s smartphone efforts are put in the LG Velvet 5G. It will be revealed soon and will replace the LG G-lineup. However, if the rumors are accurate it will be quite expensive for a Snapdragon 765G handset. And that may be a risky move.
