LG Gains Big Profits by Closing Smartphone Division

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LG Gains Big Profits by Closing Smartphone Division


The company, which has made great attacks on the smart phone for a while, has been unable to make a profit in this area recently. After LG made the decision to shut down the smartphone space, the company reported huge revenue in its 2021 first quarter report.

LG smartphones were at the forefront as a brand that did not fall into the hands of people for a while. Due to the proliferation of Chinese brands and the inability of the LG brand to follow the latest trends, the company started to lose money in the smartphone field.

In this direction, the company announced that it has closed the smartphone division with a definite decision. The company drew attention to its first-quarter revenue after shutting down its smartphone division.

The company started to work to close the smartphone space due to low demand and unprofitability. However, the company achieved great success with the revenue it experienced in the first quarter of 2021. According to LG statistics, the company has grown by 48.8% compared to the second quarter of last year to 15 billion. dollar It was reported that he had a large income.

It achieved the highest quarterly revenue in the history of the Korean manufacturer. As the first quarter revenue of 2021, it increased by 65.5% compared to the second quarter of last year and achieved approximately $967 million.

LG Gains Big Profits by Closing Smartphone Division

The official shutdown of LG Mobile Communications Company did not affect the company’s performance. Although the LG Electronics division is officially operational by the end of this month, its earnings and costs will not be reported and will be treated as discontinued operating expenses. The provisional consolidated revenue figures were based on the Korean version of the International Financial Reporting Standard (K-IFRS) prior to publication to provide investors with accurate financial data, including net income.

iPhone Phones May Appear in the Empty Smartphone Section in LG Stores

After LG left the smartphone market, the range of devices in the company’s stores has shrunk slightly. LG company, which wants to use this situation to its advantage, Apple It is said to be close to a new deal with the firm. LG will give the smartphone part emptied in its own store to the Apple company. news are among.

However, this possibility Samsungdid not please him. If LG starts selling Apple products, it would be against the agreement the two companies made in 2018. About three years ago, Samsung and LG agreed that they would not lease their stores to different smartphone brands.

Samsung fears iPhone sales in LG-branded stores will reduce the share of 5G smartphones. If you remember, according to the results of the first quarter of this year, Apple became the leader in the field of 5G devices. Its rival, Samsung, ranked fourth in the 5G industry.

LG guarantees that its agreement with Apple will not violate agreements with other companies. Samsung enlisted the help of three of the largest mobile operators in South Korea to take control of LG. Thus, Galaxy smartphones will appear on the shelves of LG stores alongside the iPhone.

Source: technology


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