LG posted record revenues in 2017 but its mobile division struggled mightily

Shawn Knight

TechSpot Staff
Staff member

LG Electronics on Thursday said it pulled in record revenues of KRW 61.4 trillion ($55.4 billion) in 2017, an increase of 10.9 percent year-over-year, which is the highest in the company’s history. Its struggling mobile division, however, wasn’t quite as fortunate.

Fourth quarter mobile revenues checked in at KRW 3.07 trillion ($2.77 billion) albeit with a quarterly operating loss of KRW 213.2 billion ($192.33 million). That’s an improvement over the KRW 375.3 billion ($331.37 million) in lost in the previous quarter although as TechCrunch highlights, there’s really no sign that things will drastically change anytime soon.

LG said strong sales of the V30 and other premium smartphones as well as an improved business structure helped stem the losses but pointed to a challenging marketplace and strong competition from Chinese brands as growth barriers.

Full-year sales in the mobile division checked in at KRW 11.67 trillion ($10.52 billion).

Over the past two years, LG Mobile has posted just one quarter of profitability (Q1 2017 with a profit of $3.2 million). Before that, you have to go back to Q1 of 2015 to find another positive three-month period.

Fortunately, LG has plenty to look forward to in 2018. The mobile division shuffled management late last year, emerging with a new CTO and CEO – the latter of which, Hwang Jeong-hwan, has years of experience in the company’s R&D department. With Mobile World Congress just around the corner, the platform is there to launch something exciting. Whether or not they’ll be able to capitalize on the opportunity, however, remains to be seen.

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tipstir

TS Ambassador
I only owned LG G3 after it fell and crack it wasn't the same after that! Some clear packaging tape can make the crack seem like it wasn't there and return the touch screen features. After the G3 I am not investing into another LG nor Samsung. I want something that works, quick and function. Both brands have their own GUI and frankly I don't care for it.
 

soonerproud

TS Rookie
I only owned LG G3 after it fell and crack it wasn't the same after that! Some clear packaging tape can make the crack seem like it wasn't there and return the touch screen features. After the G3 I am not investing into another LG nor Samsung. I want something that works, quick and function. Both brands have their own GUI and frankly I don't care for it.

I had the exact opposite experience with my LG G3. It was a lot tougher than both of my Samsung phones, both of them (Galaxy S3 and my current phone a S7 Edge) had cracked screens. I'm not a fan of either Samsung's GUI nor the G3's so I use Nova Launcher Prime. Sorry you had a horrible experience.
 
J

Joe Blow

They could come out with a sexy new line of 'dumb' phones. Something to steer people away from the mindwrecking smartphones.