Last updated on December 8th, 2022 at 02:47 pm
South Korean firm fails to launch affordable 5G smartphones
LG’s smartphone division has been unprofitable for 23 consecutive quarters
Operating loss for the period from October to December was about $ 223 million. For LG’s smartphone division, this is the 23rd consecutive quarter ended in losses. The report cites declining sales of LG premium devices and a shortage of single-chip 4G systems as the main concerns.
Unlike other companies, the South Korean firm has not been able to launch affordable 5G smartphones. The same LG Velvet is considered overpriced compared to other 5G phones from Chinese brands. In addition, the company released a controversial Snapdragon 845 version of the device, however, it did not attract attention either. Few people in 2020 wanted to buy a new smartphone with the 2018 platform.
The company’s smartphone sales totaled 1.39 trillion won ($ 1.24 billion). This is 9.2% lower than in the third quarter but at the same time 5% more than in the same period last year.
So far, the company is not giving up. In 2021, LG expects demand for its smartphones to rise to pre-pandemic levels.
