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LG has released its financial results for the second quarter of this year, and fortunately we have good news. Sales grew 3.2% over the same period last year, and its operating income climbed to 16.1%, which brought the company back about 715 percent. millions of dollars. However, these achievements were not obtained by the smartphone division, on the contrary, the sector records a new loss of nearly 172 million US dollars.
Since the second quarter of 2015, the mobile division of LG accumulates disappointing figures. The situation is so complicated that smartphones have only made profits in the first quarter of 2017, thanks to the LG G6, although the numbers are very low compared to other business areas of the company .
The South Korean manufacturer said that the losses in the quarter in question are due to the deceleration of the global smartphone market, as well as the decline in terminal and intermediary sales in Latin America. However, according to Gartner's latest data, the global situation improved in the first quarter of 2018.
LG expects the numbers to increase in the second half of this year year thanks to its new flagship products, the LG G7 ThinQ and the V35 ThinQ. In addition, a restructuring of the mobile phone industry may occur, the brand itself giving clues that it intends to change. Recalling that Sony, which also has problems in the smartphone division, has already done so in 2016, managing to contain some of the huge losses.
In any case, the second quarter was not just negative. The Apparatus division posted a profit of $ 427 million, up 1.7% from the first quarter. Much of this achievement is due to the increased sales of air conditioners in the northern hemisphere.
Another successful division was home entertainment products, namely television sets and stereos. The brand's OLED and 4K TVs totaled $ 377.4 million in profits. Recalling that LG is still one of the leading manufacturers in this industry worldwide. Now it remains to be seen whether the new ThinQ G7 and V35 ThinQ will win consumers to the point of making significant sales and generating positive operating profits at LG later this year.
Source: LG
