LG Electronics Faces Another Smartphone Loss... Estimated 800 Billion KRW Last Year

[Asia Economy Reporter Seulgina Jo] LG Electronics recorded strong performance last year by surpassing operating profit of 3 trillion KRW for the first time in history, but the mobile division continues to operate at a loss.

LG Electronics announced on the 8th that its preliminary results for Q4 2020 showed sales of 18.7826 trillion KRW and operating profit of 647 billion KRW. Although segment-specific results were not disclosed, it is estimated that the MC Business Division, responsible for the mobile business, posted an operating loss in the mid-200 billion KRW range.

LG Electronics MC Business Division recorded losses of 238 billion KRW in Q1, 27 billion KRW in Q2, and 148 billion KRW in Q3 last year. If the loss in Q4 was in the 200 billion KRW range, the annual loss would be approximately 800 billion KRW.

However, this is an improvement compared to 2019, when operating losses exceeded 1 trillion KRW. LG Electronics has recorded operating losses for six consecutive years since 2015.

LG Electronics is aiming for a turnaround with the launch of the rollable phone "LG Rollable (tentative name)," which can be rolled up and unfolded. From the 11th, at the world's largest IT and home appliance exhibition 'CES 2021' held online, LG will unveil a teaser advertisement featuring a prototype of the LG Rollable and plans to officially reveal and launch it in the first half of the year.

Additionally, the company is counting on cost reduction effects through expanded Original Design Manufacturing (ODM) and sales of budget-friendly products.

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