LG expects Q2 2016 profits to rise to two-year high, despite more mobile losses
Not to be outdone by domestic arch-rival Samsung, home appliance, HD TV and mobile phone giant LG is also ready today to forecast strong overall financial performance for the recently concluded April – June 2016 quarter.
Unlike the world’s most popular Android device manufacturer however, the company behind the ingenious G5 looks resigned to yet another period of smartphone decline in sales, resulting revenue and especially the division’s bottom line.
Once upon a time expected to rack up a cool 10 million shipments by year-end, it seems the LG G5 flopped hard, primarily due to “stiff competition”, so far pushing just 2.2 mil units out the door. Along with its lower-end, lower-cost cousins, the 5.3-incher presumably yielded losses of 94 billion won, equating to over $80 million.
Price cuts, job cuts and even marketing expenditure trims will apparently not be enough to get LG’s mobile department out of the red in Q3 2016, at least according to financial analysts. Good thing TVs, refrigerators and washing machines continue to thrive, offsetting the G5’s poor box-office scores and ultimately helping LG post its best results since Q2 2014.
Specifically, 585 billion won profits ($504 million) on 14 trillion won revenue ($12 billion), based on provisional estimates set to be finalized in a few weeks.