Ad spending does not help LG Mobile sales in 2Q18

LG Electronics had another good quarter this spring as a whole with sales going up 3.2 percent from last year to ₩15.02 trillion ($13.4 billion) and operating income having jumped 16 percent. Its strongest performing divisions were in home entertainment and appliances as well as business-to-business products.

The biggest decline came in its mobile division with a 19 percent drop in revenues to ₩2.07 trillion ($1.85 billion). While the company was pouring money into marketing its new G7 ThinQ phone, it claims that mid- and low-range phones have not been popular in the North and South American markets. It looks to fight stiff competition to grab hold of any upgrades in a “stagnant” business this fall — rumors have been bubbling about the LG V40 for this fall.

The posting comes the same week as sister company LG Display reported losses for a second consecutive quarter. The ₩228 billion ($202 million) loss was less than what the market consensus forecast was, but the going has been difficult as LG has had to navigate new US-China tariffs, a depression in the LCD market and difficulty in ramping up OLED operations. It, however, has recently launched new contracts for OLED and LCD displays for major client Apple.

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About The Author
Jules Wang
Jules Wang is News Editor for Pocketnow and one of the hosts of the Pocketnow Weekly Podcast. He came onto the team in 2014 as an intern editing and producing videos and the podcast while he was studying journalism at Emerson College. He graduated the year after and entered into his current position at Pocketnow, full-time.