LG Electronics’ mobile division continued to struggle, booking an operating loss of KRW136.1 billion ($127 million) for Q1, a significantly worse result than the same period in 2017, attributed to the company pushing its annual major smartphone launch into Q2.
Revenue for the struggling unit was down 27 per cent year-on-year to KRW2.16 trillion in Q1 2018. During the quarter it shipped 11.4 million handsets, down from 14.8 million in the same period of 2017.
Its losses were much higher than the KRW200,000 booked in Q1 2017, though in its earnings statement the company noted it had made improvements to its “operating deficit” compared to the latter part of 2017 despite increased component costs.
The forthcoming handset, it said, is expected to provide “positive results” for the division in the current quarter. During Q2, it also expects to open a software upgrade centre, which it said would improve customer support.
Its optimism for the future comes despite stagnant growth expected in the global smartphone market and intense competition, it added.
As had been expected the mobile division weighed on overall positive results for LG Electronics. The company booked its highest ever operating profit figure for a Q1 of KRW1.11 trillion, up 20 per cent year-on-year. Revenue increased to KRW15.12 trillion, up 3.2 per cent on Q1 2017.