LG sees sales of smartphone branch fall dramatically; position in the market is reconsidered
Things are still not going well with LG’s smartphone branch. When the annual figures are published, it emerges that the Korean manufacturer is having difficulties with the sale of mobile devices. The company will reconsider its position in the market.
LG smartphone branch in red
LG is a major player in various markets, but the manufacturer is struggling in the smartphone market. The Korean manufacturer has announced that a loss of 750.63 million dollars has been incurred in the past year. Quarter-on-quarter, LG’s smartphone division is showing deep red numbers, and now it’s no different. (Very) small bright spot; the loss is slightly less than in 2019, when the loss amounted to 858.34 million US dollars.
The turnover of LG’s smartphone division increased by 4.9 percent in the fourth quarter of 2020, compared to Q4 2019. Incidentally, the turnover was 9.2 percent lower compared to the third quarter of last year. According to LG, this is due to the poor availability of 4G chipsets and disappointing sales in the high-end segment.
An interesting development is that LG indicates that it will reconsider its position in the smartphone market. This comes as no surprise, as an internal memo previously leaked where LG indicated that it may be withdrawing from the smartphone division, or that it will focus on other segments. We are now looking at what the rate will be. The manufacturer indicates that it expects the worldwide demand for smartphones to rise to that of before the corona crisis, but that competition will also increase.
Despite the negative figures, there was also good news. Overall, LG saw profits increase by a whopping 31.1 percent. The sale of (OLED) televisions, vehicle parts and household appliances contributed to this.
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