LG Electronics said its mobile unit will target on increasing sales of its V30 smartphone and improving cost competitiveness in the final quarter of 2017, after recording another operating loss in Q3.
For the period, the company reported an operating loss in the mobile unit of KRW375.3 billion ($331.4 million), compared with a Q3 2016 loss of KRW425.6 billion, on sales of KRW2.81 trillion, up from KRW2.6 trillion.
The 8 per cent year-on-year revenue growth was attributed to “steady sales” of its G6 flagship and a strong performance for its mass-market devices including its Q6 and K series.
Smartphone shipments of 13.7 million units were 1 per cent higher year-on-year, although the company did note strong sequential growth in South Korea, its home market (up 44 per cent) and North America (up 9 per cent).
But profitability was impacted by increased raw material costs and a “one time royalty expense” – presumably the payment which gave Nokia a Q3 boost.
Looking forward, LG expects strong battles in the premium space, and increased promotional expenses due to market share and price competition.
In addition to its focus on V30, it will look to increase the sales of mass-tier devices and “improve cost competitiveness and business fundamentals by reinforcing platform and modular activities in the manufacturing process”.