LG's mobile business just lost $67.8 million
If you were under any doubt that companies will struggle to make a profit from the smartphone business, you won't after today. LG has updated its financial results to reveal that the firm's mobile division lost $67.8 million in the last three months. That's in sharp contrast to the previous quarter, where the company could boast of squeaking a 1.2 cent profit from every handset that it sold. LG believes that the recent launches of both the Nexus 5X and V10 smartphones will help to wash away some of that pain. If executives were looking for reassurance, they'll get it from Sony which also posted its updated financial results today. The rival mega-conglomerate conceded that its own mobile division is losing $1.9 million every single day -- ouch.
As for the rest of the company, LG's actually doing pretty well, with the sales of OLED and 4K TVs on the up-and-up in the US and Latin America. Not only are people buying more TVs, but the division is now able to make them much more cheaply, increasing the amount of profit that it's making on every one. Meanwhile, the home appliances division brought in $201 million in profit thanks to the sale of its Twin Wash machines and air conditioners. Overall, LG earned a tidy profit of $109 million, which isn't bad considering the state of the electronics industry these days.
[Image Credit: Lee Jin-man/AP]
