LG Electronics reported a poor second quarter performance from its mobile unit, as it suffered from weak sales of premium models and raw material price increases.

The news is particularly bad for the company in that it comes not long after the launch of its latest flagship device – G6, unveiled at Mobile World Congress. The company is also teeing up a launch for IFA2017 in Berlin in the not too distant future, and has announced more mid-tier devices in the interim.

Quarterly smartphone shipments of 13.3 million units were down 4 per cent year-on-year.

Operating loss for the Mobile Communications unit during the period was KRW132.4 billion ($118.8 million), compared with a prior-year loss of KRW139.5 billion, on revenue of KRW2.7 trillion, compared with KRW3.42 trillion.

The mobile unit was at breakeven during the prior sequential period.

On a positive note, it said that North America remained strong, “contributing a 13 per cent increase in sales compared to the same period last year, thanks to strong performance of the company’s mass-tier lineup”.

Looking forward, the company is planning its successor to V20 and will enhance its G6 model line-up (it has already announced G6+). It also intends to improve profitability by managing costs and pursuing a platform design strategy.

“The introduction of the new Q series and the rollout of a new high-end device in the weeks ahead are expected to bolster the company’s performance in the second half of 2017,” a statement claimed.

On a group level, the company reported a profit of KRW514.9 billion, compared with KRW268.5 billion, on revenue of KRW14.55 trillion, up from KRW14 trillion.