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It’s no secret that the LG G5 was a huge flop, and it seems that the device played a big part in the Q4 2016 financial results for LG. The company posted its first quarterly loss in 6 years, with the company posting a net loss of $223.98 million in the final quarter of 2016.
The LG G5 was largely to blame after the device flopped after being unveiled at Mobile World Congress last year. The device was launched with some fanfare as LG looked to change the game with a new modular design. This design has since been scrapped as LG gears up to unveil its latest flagship, the LG G6, which has been leaked ahead of its official announcement.
Profitability was hampered by weak sales of the G5 smartphone and higher marketing investments. Introductions of the next G Series phone and mass-tier devices in the second quarter following Mobile World Congress are expected to help greatly improve the LG Mobile Communications Company’s market position in 2017.
Things could have been worse in Q4, but thanks to “strong sales” of the LG V20, the quarter was somewhat salvaged. Unfortunately, the sales couldn’t save LG from sinking. The mobile division wasn’t the only issue that LG encountered over the course of the year, as LG claimed the vehicle components division was also partially to blame.
Overall, the company reported an overall operating profit of $1.16 billion in 2016, which is a 12.2% increase when compared to 2015. LG claimed this was due to strong sales of its entertainment systems, as well as its home appliances.
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