LG's mobile division is in dire straits

[Shawn Knight]

The big picture: LG’s mobile arm is essentially on life support but they aren't waving the white flag just yet. A new 5G phone and the relocation of its smartphone manufacturing center could create some positive momentum heading into the remainder of 2019 but will it be enough to turn the tide?

The division brought in KRW 1.51 trillion ($1.34 billion) in the first quarter of 2019, a 30 percent drop compared to the same period a year ago and the lowest level of revenue for LG Mobile in roughly eight years.

The South Korean technology company said it narrowed its quarterly operating loss to KRW 203.5 billion ($181.05 million) as it continues to rebuild its smartphone business.

LG last November put TV boss Brian Kwon in charge of its mobile division in hopes that he could right the ship. The company said operating results improved from the previous quarter as a result of a stronger business structure, so there’s that.

The tech giant expects the LG V50 ThinQ 5G smartphone to create positive momentum in the second quarter. Additionally, moving smartphone manufacturing operations from Pyeongtaek, Korea, to Haiphong, Vietnam, should help boost global competitiveness while improving profitability, we’re told.

LG Electronics as a whole generated sales of KRW 14.92 trillion ($13.27 billion) and an operating profit of KRW 900.6 billion ($801.25 million). Revenue and operating income was down compared to 2018 but on a positive note, the company’s home appliance business reported record first-quarter sales and profits.

Lead image courtesy Grzegorz Czapski via Shutterstock

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https://www.techspot.com/news/79910-lg-mobile-division-dire-straits.html

 

[Toju Mikie]

I still have my LG V20 and use it from time to time. I think it was the last flagship with a removable battery. They should work on making their phones more unique and not like other phones.

 

[mctommy]

Doesn't surprise me one bit. They had their fair share of design issues from the G4 days then the modular G5 was crap. Their decline was very apparent when big carriers started carrying less and less of their models. HTC went down in similar fashion.

 

[Fearghast]

Considering software side of my LG V30+, I am not surprised at all.
LG game me all the reasons not to buy LG phone ever again - hardware is solid, software is trash.

 

[regiq]

The current PLN to USD conversion rate is 0.26 if you wonder what's that price on the photo

 

[rrwards]

Considering software side of my LG V30+, I am not surprised at all.
LG game me all the reasons not to buy LG phone ever again - hardware is solid, software is trash.

I also have a V30+ and really don't find the software to be that bad. The colors are garish and the launcher is bad, but both are easily fixed. They have a theme engine, add one of the many dark/black/amoled themes and a new launcher and it's perfect.

 

[MasterMace]

LG has been ignoring its base for a long time. It wouldn't surprise me if they went bellyup before their 10 series

 

[Fearghast]

Considering software side of my LG V30+, I am not surprised at all.
LG game me all the reasons not to buy LG phone ever again - hardware is solid, software is trash.

I also have a V30+ and really don't find the software to be that bad. The colors are garish and the launcher is bad, but both are easily fixed. They have a theme engine, add one of the many dark/black/amoled themes and a new launcher and it's perfect.

TBH I don't really care for launchers or themes - if I do not like the stock one, I just use Nova Prime.
My concern are toon of bugs - proximity sensor, RAM management, needing to restart the phone one 2-4 weeks, bad camera postprocesing (can be fixed with GCam) etc.
And no Android 9 O.o

 

[StrikerRocket]

I still have my LG V20 and use it from time to time. I think it was the last flagship with a removable battery. They should work on making their phones more unique and not like other phones.

I bought on a little more than a year ago, for a ridiculously low price, as it was not in demand any more, and it still rocks! Never buy latest tech gadgets, it's scam! I got mine for a little more than €150 instead of more than €750 when it came out in France! And yes, with a removable battery, I will not swithc anytime soon!

 

[QuantumPhysics]

Don't worry: all they need is a folding phone and they'll be fine LOL.

 

[QuantumPhysics]

I will probably never use an Android as my personal phone, but last year I bought two Android phones: one for mom and one for my girlfriend.

I bought my girlfriend a Samsung J6 for less than $220.

Bought my mom a birthday gift: LG STYLO 4 for less than $250.

I was actually quite impressed by the build quality and features of both. Mom loves her phone and my girlfriend does too.

LG can't really compete in a market dominated by Apple - who corners profits - and Samsung who is slightly behind. They are better off making mid-range, global use handsets with prices that poor people in poor countries can stomach.

 

[lazer]

I love my LG.

I had a Samsung that I dropped and broke, so I got a LG G3 way back when and loved it. Recently I bought a LG G6 and am very pleased with it. I only bought LG because it was cheaper than Samsung but sincerely, I don't think Samsung is worth the high price compared to the lower price on LG.

I hope LG is able to turn itself around but it is hard times for cell phone companies now.....

 

[Jackwoz]

Im still rocking my V20. The way they made so hard to root has turned me off buying LG again. I want to be able to update/mess around with my equipment.

 

[Theinsanegamer]

LG got rid of their removable batteries and headphone jack. At that point, LG devices became grey blobs of mediocrity. There is absolutely nothing to set apart LG from any other phone maker, the same issue HTC has. They dont even use stock android ALA motorola, and they dont have the marketing budget of samsung.

Combined with their long history of poor quality software and devastating hardware faults, its amazing LG is still in the market IMO.

 

[himindedlolife]

LG's reputation got destroyed with the never ending boot loop nightmare. My G2 did it and then my Nexus 5X. Ergonomically LG makes good phones but without a reputation for reliability, that good looking products won't save you. Smartphones are complicated and it takes a lot of money and expertise to get it right. Not every company can be a winner.