LG’s 2020 financial report shows Mobile division is still burning cash
The past weeks have been filled with mixed reports on LG’s future in the mobile sector and there’s clear reason why – LG Mobile is still operating at a loss. Today, the Korean tech conglomerate published its Q4 2020 financial report and the numbers show the Mobile division capped a loss of KRW 841.20 billion ($750.63 million) for the 2020 calendar year.
Operating loss for the October-December period alone was KRW 248.5 billion ($222.93 million) and marked LG Mobile’s 23rd consecutive quarter ending with a loss. The report notes stagnant sales of LG’s premium smartphones and shortage of 4G chipsets as the main problems. Smartphone sales brought in KRW 1.39 trillion ($1.24 billion), which is 9.2% lower than Q3 values but at the same time is up by nearly 5% compared to the same time last year.
Despite the rough financial situation, LG believes the push for 5G will lead to more demand for its smartphones as consumer demand is expected to return to pre-pandemic levels in 2021. The report also notes that LG will “closely review the direction of its mobile business” and will “share its business direction once determined”.
- 01 Feb 2021
The R&D deparment of LG is way too stupid. Releasing alot of different models with almost the same specs in a year. Why not release a series of different price range smartphones? 1 entry level, 1 mid and 1 flagship(G) like any other brands do. An...
- 31 Jan 2021
Thank you. These companies produce WAAAAAAAAAAAAY too many devices. It generates extra e-waste and dilutes their after sale support.
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- 31 Jan 2021
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