LG Electronics on Thursday posted its consolidated financial results for the third quarter of the year, revealing that its mobile unit is still struggling to perform and has nearly tripled its losses sequentially, having posted an operating deficit of $331.37 million compared to $117.27 million from Q2 2017. The figure still marks an annual improvement of 13 percentage points, with LG Mobile Communications being $389.4 million in the red in Q2 2016. The company’s mobile division also managed to improve its revenue over the three-month period ending September 30th, having posted $2.48 billion in all revenues which is both a sequential and year-on-year increase of four and eight percent, respectively.
LG attributed the revenue improvement of its smartphone business to the sales of the LG G6 flagship, the same product it said was underperforming last quarter and contributed to its previously posted losses. A portion of the increase was also generated by the LG Q and K lineups, the firm said, though neither of those product families led to significant income seeing how entry-level and mid-range smartphones generally offer thin profit margins so not even somewhat improved performance in this segment significantly contributed to LG’s bottom line, as evidenced by its latest financials. The company’s domestic shipments rose 44 percentage points on a yearly basis, having reached 13.7 million devices, with LG saying it’s now focused on promoting the V30 and working on improving the general “cost competitiveness” of its offerings in Q4 2017, suggesting that some major price cuts of its handsets are on the horizon. This effort will likely encompass most of the firm’s key markets including North America where its shipments increased by nine percent during the last quarter.
The South Korean original equipment manufacturer has been doing better in other segments, having posted an operating income of $455.7 million on a total revenue of $13.44 billion, thus continuing to improve its profitability and pleasing investors. LG’s Home Entertainment Company is still its flagship unit which recorded $404.39 million in profit over the last period on the back of a rising demand for high-end TVs in both Asia and the Western world. The final quarter of the year is likely to be even more profitable for LG as the performance of most consumer electronics manufacturers traditionally spikes over holidays.