LG’s mobile division reports $117 million loss thanks to LG G6’s poor sales
LG has hit a bit of a stumbling block recently, trying to recover from the failure of the LG G5. The company released its financial results for the second quarter of 2017 and while the home appliances arm of the company is doing well, its mobile division reported an operating loss of $0.12 billion on revenue of $2.39 billion.
Those numbers are about the same as the Q2 2016, which LG says can be attributed to lower than expected sales of LG flagship devices and rising component costs. Component costs are one reason why LG decided to opt to put last year’s Snapdragon 821 into its first flagship of 2017, instead of doing for the Snapdragon 835. Despite that, the company’s mass market phones have performed well in North America, bringing 13% more sales than a year ago.
LG says it expects to see an uptick of sales in the third quarter with the launch of new devices including the upcoming LG V30 and the new rumored LG Q series. Perhaps LG has learned their lesson that including last year’s processor when going up against other flagships just isn’t feasible when most people want the latest and the greatest.
The inclusion of the Snapdragon 821 prevented me from considering the LG G6 as a handset this year, how about you?