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


LG Q60

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

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.

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.

Source/VIA :
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20 Comments

  1. 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????

  2. Z0x9c8v7b6n5m4
    January 31, 2020

    LG makes good phone’s but I think they should change or come up with a new name instead

  3. 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.

  4. 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

  5. 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.

  6. 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.

  7. 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.

  8. Justin Shaddox
    January 31, 2020

    I love my LG Stylo 4 and 5 so much keep up the awesome work 🙂 LG for life 🙂

  9. 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.

  10. 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.

  11. Joe Stone
    January 31, 2020

    Bootlooping garbage and they are surprised that they lose money

  12. 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

  13. 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.

  14. 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!

  15. Guest
    February 1, 2020

    Because like 4G it will take several years for wide spread implementation.

  16. 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

  17. 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.

  18. 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.

  19. 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. 🤷

  20. 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