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LG sees loss grow weak smartphoneverkopen

LG sees loss grow weak smartphoneverkopen

Photo: NU.nl/Jeroen Faucet

The South Korean electronics group LG has its loss in the last quarter of 2016, with a significant grow, largely due to weak performance of the smartphonetak.

On a turnover of 14.8 billion won (11.8 billion euro) was a net loss of only 207 million euros, turned, and was LG Wednesday announced (pdf).

It’s already bad with the smartphonetak of LG, and also in previous quarters, was this a huge loss turned. The company cites sales of its flagship G5 also “weak”, although, LG that the new V20 it does well though. This is a device that is not available in the Netherlands.

Total sold to LG in the fourth quarter, 14.1 million smartphones, 8 percent fewer than a year earlier. Throughout 2016 the company sold 55 million devices, almost 5 million fewer than a year earlier.

LG says to expect that the competition on smartphonegebied next year will increase even further, and that consumers are becoming more discriminating about the quality and functionality of phones. To get back to profitability, the company wants to a success of its next flagship G6, and also a cheap “megahitmodel” release.

Competition

The televisietak of LG saw its sales grow light compared to last year, but the profitability decreased. According to the company that is due to higher marketing and production costs.

The division of LG that auto parts such as batteries, is in the last year has grown rapidly. Revenue in the fourth quarter of 2016 (almost 700 million euros) was 67 percent higher than a year earlier. Also this part is still loss-making, by investments in research.

In 2017 think LG are losing to be able to limit, says the company is not completely out of the red figures are expected to come out.

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