Latest in Gear

Image credit:

LG vows to make its failing mobile unit profitable by the end of 2021

The company says it's planning some 'wow factor' features.
Share
Tweet
Share

Sponsored Links

SIPA USA/PA Images

LG hasn't made a profit from its smartphone division for years, but it reckons the tide is about to turn. Speaking at a press conference at CES, the company's chief executive Kwon Bong-seok said, "LG Electronics mobile business is going to be profitable by 2021. I can say we can make that happen as LG Electronics will expand our mobile lineup and steadily release new ones attached with some wow factors to woo consumers."

The CEO didn't elaborate exactly how LG will expand its phone lineup, nor give any details on its proposed "wow factors," but reiterated the company's ambition to boost its competitiveness in an already saturated market.

LG has faced its fair share of challenges in recent years. At the beginning of 2019 it reported an overall loss of $72.5 million in the three months prior -- much of that driven by its failing mobile division which saw sales drop by 40 percent throughout 2018. The company had taken a bullish approach to its smartphone arm -- in particular launching the five-camera V40 ThinQ at the end of 2018 in a bid to turn things around -- but that's not been enough to pull it back into profit.

The company has since seen a number of staff shakeups -- presumably in a bid to save the troubled division. Brian Kwon -- formerly the company's home entertainment boss -- took over the smartphone arm at the end of 2018. At the end of 2019 the role was handed to Morris Lee. In that period, its mobile division did manage to narrow its loses by a reasonable amount, citing increased production efficiencies and cost improvements, so an expanded product lineup and some wow factors could well help to accelerate this positive trajectory.

Follow all the latest news from CES 2020 here!

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Comment
Comments
Share
Tweet
Share

Popular on Engadget

'Call of Duty' developer will further crack down on racist players

'Call of Duty' developer will further crack down on racist players

View
The next 'Elite Dangerous' expansion lets players walk on planets

The next 'Elite Dangerous' expansion lets players walk on planets

View
Epic delays the next 'Fortnite' event and season again

Epic delays the next 'Fortnite' event and season again

View
Amazon knocks $300 off the price of Apple's 16-inch MacBook Pro

Amazon knocks $300 off the price of Apple's 16-inch MacBook Pro

View
‘Final Fantasy Adventure’ was everything I hoped for 25 years later

‘Final Fantasy Adventure’ was everything I hoped for 25 years later

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr