LG is disappointed. Sales for its flagshipare less than stellar.
The electronics company announced its second-quarter earnings Thursday, saying the quarter was a “challenging” one for its mobile business. LG said that even though mobile had revenues of $2.39 billion, it had an operating loss of $117 million. That means growth for mobile has stayed stagnant over the last year.
This is “primarily due to weaker than expected premium smartphone sales and increase in component costs,” LG wrote in a statement.
In the highly competitive smartphone world, LG has lost substantial ground to chief rival Samsung, as well as to Apple and Huawei.
LG expects that the introduction of its new Q series phones, along with a new high-end device,, will help boost earnings in the second half of this year. As for the company overall, its revenue has increased by about 4 percent over last year, led by sales in its home appliance and vehicle components units.