While Samsung is doing pretty well, despite his fateful episode Note, Their neighbor LG don’t do well with cell phones. No matter how hard they try, they don’t make it to the top of a ranking in which there’s a lot of Chinese manufacturers, nor do they make the division profitable, something they do with other important departments in the house, fortunately.
Phone inventions do not end up being like in the market, the LG G5 has not sold as they expected and they have no problem in counting it in their summary of financial results. A report that tells us about the accounts of the last quarter of last year, also the accumulated of the year.
Profitability has been hampered by weak sales of the LG G5 phone and higher marketing investments.
I don’t think it’s our mission to start dropping figures like crazy, rather we want to get from there the useful information or the most striking data, as there have been losses of 224 million dollars in the last quarter of the year, motivated by the malfunctioning of two activities: the mobile, which is ‘LG Mobile Communications’, and its business of components for vehicles.
Revenues for the mobile division were 2.51 billion in the quarter, 15% higher than in the prior period, but 23% lower than in the prior year. Another poor result for a division that should be more important: they’ve been out of business for seven quarters in a row.
That said, LG blames the LG G5, his most important phone last year while saying that his other cockerel, the LG V20, has been selling quite well. The latter was put on sale in October in some markets, so he hasn’t had that much time to settle accounts either.
LG doesn’t talk about the number of phones it has sold, but they are sure to be far from the 90 million Samsung registered in the quarter.
What LG must have understood with this is that its second bet on the high range likes more than the modular option, so we’re not surprised that the new LG G6 is going to bet on a more traditional configuration. It’s a shame you can’t get on the Snapdragon 835 train.
On this occasion, there is no trace of ‘number of units sold’, a fact that LG normally does not hide even though it is not something that a party can do with. If we look back, we have that the Korean company sold 59 million phones in 2014, to rise to 59.7 in 2015.
Fortunately, LG is a conglomerate of companies with a very large diversity of activities, and almost all of them work quite well. The company’s overall accounts are good mainly because of the well-functioning consumer electronics they have in the home, from televisions to appliances to air conditioning solutions.
Although we have previously given you a figure on losses, they are relative to the fourth quarter, for the full 2016 there was a profit of $1,160 million (12.2% more than in 2015).
Mobile phones are not the only division that apparently works regularly, the one in charge of components for vehicles has not had a good year either, but the reasons are quite different, so there is no reason to worry: the year in sales has been good, but the large investment (research, development, production) that is being made in new technologies makes the numbers do not look so pretty. They are to blame for the fact that the Chevy Volt is a fantastic electric car.