After almost breaking even last quarter, LG's mobile division is back to its subpar self. In the last three months, the manufacturer's handsets lost it $117.27 million. The company is pinning the blame on "weaker than expected" premium smartphone sales -- all but admitting that the LG G6 is not shifting units.
Despite improving on its predecessor's modular eccentricities, the LG G6 fell short of the Galaxy S8 (but then again, so did most Android phones). The flagship's lacklustre sales will do little to stem anxiety over its beefed-up successor, the G6+.
As in the past, LG's other primary divisions came to its rescue in the quarter. LG appliances posted an operating profit of KRW 466 billion ($418 million), buoyed by solid sales of its washing machines and refrigerators. Its television business was another highlight, banking a respectable KRW 343 billion ($308 million) profit thanks to growing demand for its pricey OLED TVs. Overall, LG's operating income came in at KRW 664.1 billion ($588 million), and its revenue rose 3.9 percent to 14.6 trillion won ($12.9 billion).
Now on its ninth consecutive quarterly loss, the manufacturer's mobile division remains the proverbial thorn in its side. The results will sting a bit more in the wake of Samsung's record quarterly earnings, which included an annual rise in smartphone sales. Nonetheless, LG will be relying on its upcoming trio of mid-range phones to help resurrect its smartphone business in the second half of the year.