LG’s Mobile Division is Still Going Downhill

LG has been rumored to quit making smartphones for a while now and there is a clear reason why. The Korean phone maker has published its financial report for 2020 which shows that the mobile division is still operating at a loss. This makes it the 6th consecutive year in which LG’s mobile division has reported a loss.

The results for Q4 2020 were published recently and the numbers show that the mobile division suffered a loss of $750.63 million during the period. The operating loss for the fourth quarter was $222.93 million.

According to the report, the negative numbers were a cause of stagnating smartphone sales caused by a shortage of premium LG phones and a lack of 4G chipsets. Smartphone sales amounted to total revenue of $1.24 billion, which is down by 9.2% compared to the last quarter but is almost a 5% increase over 2019.

Despite the mobile division going downhill, LG believes that its 5G phones will lead to increased demand in 2021 and expects to gain the pre-pandemic demand levels this year. Additionally, the report says that LG will “closely review the direction of its mobile business” and will “share its business direction once determined”.

It is unclear what this statement means, but it does not look too promising for the future of LG’s mobile division.

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