Published On: Thu, Jul 26th, 2018

LG Mobile’s losses continue but now sales are falling too

L.G Electronic Inc is one of the largest electronic manufacturers all over the world. Four major business components form L.G a successful leading manufacturing electronics brand all over the world.

LG Mobile's losses continue but now sales are falling too

These four business components are Air solutions and home Entertainment, home appliances, mobile communications and vehicle components. L.G is a promising electronics brand when it comes to purchase any home appliance as well as vehicles.

If we talk about second largest television manufacturing brand till 2008, then it is no other than L.G electronics manufacturers. But now L.G mobile accessories as well as cell phones are on the verge of losing their value.

Out of L.G four major business components, its one business component that is mobile communications has lost its value.

Today’s latest L.G Financials recorded 3.2 percent rise in sales across the group. L.G mentioned that in this year of 2018 they achieved a high profit but one of their manufacturing division faced loss and that is mobile division.

An annual drop of 23 percent recorded in mobile communications and division of L.G. Mobile communications sale is of KRW 2.07 trillion ($1.92 billion) lead to loss of 23 percent and places mobile division quarter in red.

Since 2014, L.G is facing these losses in mobile communications and did not make profit. Company tried to meet up with this loss by making new leadership for mobile communication in 2017. But still company is fighting with this dipping sales issues over the past two quarters of business.

In this second quarter of year L.G made its mobile losses down to,

“the slowing growth of the global smartphone market and a decline in mid- to low-end smartphone sales in Latin America.”

Company is now seeking a way to beat up this loss by introducing its new flagship devices. This strategy can improve L.G business structure. LG V35 and LG G7 ThinQ will be launched by LG worldwide. This business strategy can work. As Sony was also facing business problems in year 2016, they changed their business strategy and that lead them to success.

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