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.