LG Electronics reported operating losses for three years through 2016 due to low demand for its smartphones in global markets where Samsung Electronics Co. and Apple Inc. are the dominant players. (Image: LG Electronics
SEOUL, March 11 (Korea Bizwire) – LG Electronics Inc., South Korea’s second-biggest electronics company, is seeking a rebound in its mobile business with the launch of new phones after posting operating losses in recent years, industry sources said Sunday.
LG Electronics reported operating losses for three years through 2016 due to low demand for its smartphones in global markets where Samsung Electronics Co. and Apple Inc. are the dominant players.
The tech giant posted an operating loss of 268.2 billion won (US$250 million) in the mobile communications business in 2014, 119.6 billion won in 2015, 1.218 trillion won in 2016 and 717.2 billion won in 2017, data showed.
“Smaller Chinese rivals such as Huawei, Vivo and Oppo are gaining ground in the mid-priced phone markets and bigger rivals, such as Samsung and Apple, are cementing their lead in the high-end sector. At this juncture, LG needs to focus on the value-added smartphone markets for profitability,” Park Gang-ho, an analyst at Daishin Securities Co., said.
As part of efforts to turn around its loss-making mobile business, LG Electronics released the LG V30S ThinQ and the LG V30S ThinQ Plus smartphones in the domestic market this month, the company said.
The new V30 comes with what the company calls an AI camera, which can identify objects and provide optimized shooting modes to users. Other AI features include the Q-Voice, which can activate the camera, phone and text-message applications through voice commands.
Last year, LG Electronics launched the V30 and G6 premium smartphones in global markets to boost handset sales.
As LG Electronics plans to reduce marketing expenses in the third quarter and gradually launch the latest flagship device V30 in its major markets, it is expected to narrow its operating losses later this year, analysts said.
(Yonhap)
