\tThe turnaround of LG Electronics\u2019 troubled mobile division hinges on its ability to sell mid-to-premium-tier 5G handsets and further cost cuts, the company warned as it posted further declines for the unit in Q4 2019.<\/p>\n
In its financial results, the manufacturer blamed sluggish sales of mass-market handsets overseas and increased expenses for continued declines in the division.<\/p>\n
It noted its Mobile Communications unit suffered from increased marketing costs associated with product launches, lower sales and expenses to support \u201cyear-end channel inventory clearance\u201d in the quarter.<\/p>\n
Mobile unit sales dropped 21 per cent year-on-year to KRW1.32 trillion ($1.1 billion). Its operating loss was KRW332 billion compared with KRW319 billion in Q4 2018.<\/p>\n
In its 2020 outlook the company said it expected \u201csevere competition from offensive pricing policy\u201d in the market and increased demand for 5G devices.<\/p>\n
It added the business would \u201cpreoccupy 5G market demand by launching of mass-premium and mass-tier 5G products\u201d and \u201ctry to improve cost competitiveness and increase sales driven by securing key spec comparativeness and proactively utilising ODMs in mass-tier products\u201d.<\/p>\n
Net loss
\nAs predicted in its preliminary Q4 results [1] LG Electronics, which includes a range of business lines, booked a jump in operating profit, but net income plummeted on declines from its outside investments.<\/p>\n
It took a loss of KRW849.8 billion compared with a loss of KRW80.7 billion in the same period of 2018.<\/p>\n
In its statement, the company pointed to demand for home appliances for boosting its top-line in the period, though its figures were hit by the mobile unit declines and a slowdown in vehicle component sales.<\/p>\n[1] https:\/\/www.mobileworldlive.com\/asia\/asia-news\/initial-lg-figures-show-no-relief-from-mobile-woes\/<\/p>\n","protected":false},"excerpt":{"rendered":"
The turnaround of LG Electronics’ troubled mobile division hinges on its ability to sell mid-to-premium-tier …<\/p>\n
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