"Weaker than expected" G6 sales see LG's mobile division post another loss

midian182

TechSpot Editor
Staff member

With its attractive design, HDR support, and almost bezel-free display, LG hoped its G6 handset would offer consumers a cheaper alternative to the likes of Samsung’s Galaxy S8. But while it’s certainly the most impressive handset the company has produced in years, limited performance and lack of polish holds it back from greatness. Not too surprisingly, LG says sales of the flagship device have been “weaker than expected” in its second quarter results.

Overall, the company did okay. Its operating income of KRW 664.1 billion (USD 588.2 million) marks a 14 percent YoY jump, while overall revenue increased 4 percent from the same time last year to KRW 14.55 trillion (USD 12.89 billion).

LG notes that “three of the company’s four main business units reported higher revenues than a year ago.” But while Home Appliances, Home Entertainment, and Vehicle components are improving, its Mobile Communications division continues to struggle.

LG’s mobile business posted a loss of KRW 132.4 billion ($117.27 million) for the quarter. While that's still slightly better than the $132 million loss it experienced during the same time last year – mostly due to the modular G5’s poor reception – it’s still a big disappointment for the firm, which put the “challenging” quarter down to “weaker than expected premium smartphone sales and increase in component costs.”

The mobile unit cost the company $389 million in Q3 2016 and it did even worse in Q4 when it posted a loss of around $420 million. Things were looking better at the start of this year when it came close to breaking even with a loss of just $180,000 in Q1, but now the figure is back into the hundreds of millions.

But there is some good news for LG and its mobile endeavors. Mobile sales in North America are up 13 percent YoY thanks to its expanded lineup, and the decreasing price of the G6 could make it a more compelling buy.

The company is also offering a slew of new, budget friendly smartphones - the Q6, Q6+, Q6α, which are smaller versions of the G6 - and a compact version of its V20 called the LG Q8. There’s also the G6+ and upcoming V30 to consider.

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mattfrompa

TS Evangelist
Just start shipping every phone with stock android. Make any apps you want available in the play store, keep them updated or have them disappear, like they should. SO tired of garbage software, and phones being prettier than they are useful/reliable.
 
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erickmendes

TS Evangelist
I had an LG G6 for 3 weeks... It was a nice device, but it was really close in price to an S8 where I live (Brasil), and my previous device was an Samsung S7... My S7 deliver all I need. The camera on the G6 and the bigger screen was not as awesome as in the S8, so I was not sold on the G6...
Now, the LG Q6 that seems cheaper would be enough for me if it get me the same performance level of an S7, if it also deliver me a good camera.
 

Cubi Dorf

TS Booster
I've had 4 LG phones, but this time I change to different brand because LG does not do good support after sale. They don't update the phone enough and support it long enough. If I am LG, I would have fewer phone versions but better support them. Also one thing even Apple understand is the carrier (Verizon) is not the customer. I want stock Android with proper update+support or I go elsewhere.
 

m-tec

TS Booster
I'm constantly amazed how manufacturer's disregard what people want in their devices. Is it really that hard to make a device that people want??? Better device = more sales, it's not rocket science surely.
I work in the photographic industry, most people want a camera with a viewfinder. Panasonic have them, Panasonic sell more than everyone else, Canon and Nikon just don't bother to include them.....
 

Skidmarksdeluxe

TS Evangelist
It looks like quite a nice device. A pity it uses last years chipset when similarly priced competitors use the latest. Maybe advertising has a lot to do with it, I haven't seen a single ad for it on TV yet while other manufacturers (Samsung) can't brag enough about their latest wares.
 
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MaXtor

TS Evangelist
TechSpot Elite
Good, my G4 randomly died after 8 months. LG refused to fix or replace it. Upon googling, I found it is a known widespread issue with the motherboard of the phone. I decided to never purchase an LG product again. I just moved into a new condo and bought a 34 inch ultra wide curved monitor, a 65 inch 4k TV, and a new phone, all of which would have been LG had they stood by their product. I'm glad they're not doing well. :)
 

kissx

TS Enthusiast
I've had 4 LG phones, but this time I change to different brand because LG does not do good support after sale. They don't update the phone enough and support it long enough. If I am LG, I would have fewer phone versions but better support them. Also one thing even Apple understand is the carrier (Verizon) is not the customer. I want stock Android with proper update+support or I go elsewhere.
They were good a fixing my LG G4 2 times after bootloop. But I am still on 6.0 Marshmallo.
 

Shaitan

TS Enthusiast
Proud user of lg v20. Will never buy LG unless they keep the user replaceable battery feature for the next iterations
 

Capaill

TS Evangelist
Sounds to me like the expectations were wrong. You can't release an underpowered phone at the same time as Apple and Samsung release very good phones and expect strong sales. LG isn't a big enough player to steal sales from the top 2 unless it differentiates its phone in a way that consumers want such as great screen, strong battery, great performance, dust and waterproof, great sound, great camera, or something innovative about the phone. I own a G4 and am happy with it - I think I was drawn to the unique leather back even though I eventually didn't use it.