LG’s 2019 financial report reveals its mobile business is still struggling despite the company’s overall success
LG has long been one of the giants of the smartphone industry, and for the record, they are also one of the biggest companies in technology as of the current day. But recently, they have started to stall quite a bit when it comes to smartphones and Android-powered devices. As it stands, LG has lost a lot of its former market share and their devices have also started to dip in quality: their flagship smartphones are often rather lackluster and they’re no stranger to weird gimmicks, yet they keep failing to actually innovate, with most of its smartphone sales being relegated to low-end phones.
While LG as a company has been quite successful throughout 2019, its financial reports show that the smartphone division is still struggling. LG’s own graphics show a sharp drop in Q4 2019 compared to Q4 2018, which the company attributes to “sluggish sales in the overseas market with a sales decrease of mass-tier products in North America,” while the loss of profitability is attributed to a sales decline combined with an increase in marketing expenses.
Additionally, LG sees a prospective 2020 where they expect an increase in demand for premium products, partly thanks to growth of 5G demand as well as the release of various new form factors, likely alluding to LG possibly planning to release foldable phones competing with the likes of the Galaxy Fold and the upcoming Galaxy Z Flip. They also plan to amp up their pricing game as the slide alludes to an “offensive pricing policy.” It remains to be seen whether LG actually manages to pull this off, as the year is just beginning and LG is planning to launch new devices at MWC 2020.
LG clearly needs a change of strategy, as these numbers reveal. Whether what the company is planning to do to overturn these losses is actually enough, though, is a story for another day.