LG’s Revenues in 2017 were its Highest in Eight Years
Keeping aside the title of this post, the fact is LG’s smartphone business is still losing money at a rapid rate. But the launch of its new flagship LG V30+ and a relatively high demand of Google’s Pixel 2 XL has apparently helped LG to curb down on the losses when compared to last year. Despite heavily losing out on its mobile sector business, LG Electronics reported the highest ever revenue overall in the last quarter of 2017.
A majority of LG’s revenue came from its home appliances and TV business. The South Korean firm reported a record 61.4 trillion won ($55.4 billion) revenue from its electronics business throughout the entire span of last year. Out of this, a whopping 16.96 trillion won ($15.3 billion) came from the last quarter of the past year, thereby recording a 14.8% increase over Q4 2016. Overall, LG Electronics revenue went up by 10.9% YoY. LG has revealed a profit of 2.47 trillion won ($2.23 billion) in 2017. This is 85% more than what the company recorded in 2016. Apparently, its LG’s highest ever profit since 2009.
Despite the overwhelming growth both in terms of revenue and profit, LG’s ambitious mobile division still continues on its loss-making spree. The mobile business shipped a total 13.9 million units in the last quarter, down 1% YoY and up 2% QoQ. The slight increase in sales is due to the launch of the LG-made Pixel 2 XL and the LG V30. Moreover, LG decreased the markedly decreased the price of its G6 in various markets including India.
LG’s mobile division recorded a total revenue of 11.67 trillion won ($10.52 billion). The loses went down sharply too and now stands at 717.2 billion won. LG had apparently amassed a loss of 1,218.1 billion from its mobile business in 2016. The Korean firm believes that it will succeed in further curbing down the losses from its smartphone division even further this year. It aims to increase sales by shifting impetus to its premium line of smartphones. Just a few weeks back, LG announced its scrapping its flagship G series in a favor of an all-new name.