LG Electronics hasn’t seen profits with its smartphone business in years. The loss in profit dates back to when the South Korean manufacturer introduced the LG G3. That’s years in a row in losses but despite losing $440 million only in 2018, LG can’t quit this niche as the smartphone remains the center/hub of all connected things nowadays.
In a recent statement LG Electronics’ CEO, Qiao Yujin declared:
“LG’s business portfolio includes cars and home appliances, both of which are related to smartphones, so we have not considered exiting the smartphone business.”
Mainly because LG Electronics is betting big as of this year on 5G technology. As you may have heard or read in our previous reports LG will be introducing at least a couple of 5G-ready smartphones in 2019 including the LG G8 ThinQ and LG V50 ThinQ, which might steer their smartphone business back to profit. However, they will require more than 5G smartphones to win consumers hearts again.
The first issue is the boring and unimpressive smartphone designs LG released in recent years (some may say it’s an acute lack of vision which is why LG appointed a new CEO last year), the ugly and laggy user experience (UI), and the lack of timely software updates LG promised but never delivered (everyone complains about lack of firmware upgrades). Especially that starting with 2018 LG inaugurated a Global Software Update center in order to be able to drop more often software upgrades.
Qiao Jinjin also said that LG’s Mobile division is in its second year of restructuring and that it will continue until 2020, but the prospect of profit isn’t looking great considering that the up and coming LG G8 ThinQ flagship phone delivers mixed reaction among fans. Plus, the rumour has it that LG will drop the G series naming scheme as of this summer. G8 ThinQ could be the last smartphone in the G series.