LG Smartphones Report Loss for 21 Quarters... Operating Loss Reduced to 200 Billion Won Range

MC Business Division Q2 Operating Loss of 206.5 Billion KRW
Operating Loss Reduced by 100 Billion KRW Compared to Last Year

[Asia Economy Reporter Han Jinju] LG Electronics' smartphone business deficit decreased by about 100 billion KRW compared to last year.

On the 30th, LG Electronics announced that the MC Business Division recorded sales of 1.3087 trillion KRW and an operating loss of 206.5 billion KRW in the second quarter. Although the loss decreased by 34% compared to last year, sales also dropped by 18.88%.

Sales increased by 31.1% compared to the first quarter, thanks to increased smartphone sales in major regions such as North America and Korea. Due to continuous structural improvements such as strengthening cost competitiveness, the scale of losses decreased compared to the same period last year and the previous quarter.

LG Electronics consecutively launched mass-premium phones 'Velvet' and 'V60', as well as mid-to-low-end Q and K series domestically and internationally. Despite the impact of the novel coronavirus infection (COVID-19), sales increased compared to the previous quarter due to the effect of new product launches, and operating losses decreased thanks to reduced marketing expenses and the effect of relocating production facilities.

LG Electronics stated, "Although demand in the smartphone market is partially recovering, sales competition is expected to intensify. We will increase overseas launches of the strategic smartphone ‘LG Velvet’ and expand sales of affordable new models to create momentum for sales growth and continue to pursue profit and loss improvement."

This content was produced with the assistance of AI translation services.