LG smartphone sales dropped by 21.3% YoY in Q2 2019

LG’s home appliance business posted record profits in Q2 2019, offsetting smartphone losses.

lg-g8-black-back-angle.jpg?itok=XrlHCNtf

What you need to know

  • LG Electronics saw consolidated sales rise to $13.4 billion during Q2 2019, but operating income was down 15.4%.
  • LG’s smartphone sales during Q2 2019 were 21.3% lower compared to last year.
  • The company has blamed the lower sales on stagnant demand in the smartphone market and aggressive pricing by Chinese smartphone makers.

On July 30, LG announced its financial results for the second quarter of 2019. The company registered record sales during the April-June period this year, with consolidated sales going up by 4.1% to $13.4 billion. Operating income, on the other hand, was down 15.4% compared to the same period last year. While the company as a whole did quite well in the second quarter, LG’s smartphone business continued to struggle.

The company’s mobile communications division record sales of $1.38 billion during the period, which is 21.3% lower compared to last year. LG says the sales dropped due to the stagnant demand in the smartphone market and the continued aggressive pricing by Chinese smartphone makers.

When compared to Q1 2019, however, sales increased by 6.8%. Despite that, the business reported an operating loss of $268.4 million, mainly due to higher marketing investment for new models and costs related to relocation of smartphone production to Vietnam.

Even though things don’t appear very optimistic right now for LG’s smartphone division, the company is hopeful that things will get better in the third quarter. The company believes the introduction of new mass-tier smartphones, such as the new W-series for the Indian market, will result in improved performance next quarter.

Additionally, LG is hoping that the growing demand for 5G products will also contribute to higher sales in Q3 2019. LG currently offers only one 5G-enabled smartphone, the V50 ThinQ 5G. It went on sale in the U.S. last month and happens to be slightly more affordable compared to most other 5G smartphones that are currently on sale.

Best LG Phones of 2019

Related posts

Latest posts

TSMC in dilemma as US pushes ‘Made in USA’ strategy with Intel

The U.S. government has given the Taiwanese semiconductor manufacturer TSMC three proposals to keep producing with the country, which brought up several challenges.

I’ve found a perfect use for the Galaxy Ring, but I can’t recommend it

The Samsung Galaxy Ring was a miss for me — but I've still managed to find the perfect use for it. Only, I can't recommend it to anyone. Here's why.

Why I’m sad this delightful iPhone camera is about to go away

It looks certain Apple will take the 12-megapixel away from its cheapest iPhone very soon. Let me explain why I'm sad about it.

Moto G Power 2025 review: A solid $300 phone

What makes the Moto G Power 2025 a great phone despite being just $300? Find out in our review.

7 years of updates aren’t what you think they are and Samsung just proved it

The Galaxy S24 will miss out on features the hardware can't support.

Powerbeats Pro 2 vs. Powerbeats Pro: A killer upgrade for runners and gym nuts alike

Apple took almost six years to upgrade the Powerbeats Pro, so are the Powerbeats Pro 2 worth the wait? You

How to download TikTok videos on Android

If you find a favorite TikTok video you want to keep or download to watch offline, it's easy to do

Garmin Instinct 3 vs. 2X vs. 2: Every key upgrade

The Garmin Instinct 3 vs. 2 has major differences in battery life, accuracy, smarts, display quality, and memory, but the

Top Stories: ‘Apple Launch’ Next Week, Powerbeats Pro 2 Debut, and More

Apple is in the middle of trickling out a variety of announcements including Powerbeats Pro 2 and an Apple TV+

10+ Announcements Apple Could Have Rolled Into a February Event

Apple appears to have enough upcoming product announcements to justify a full event this month, yet all signs indicate these