LG announced its mobile division will be closed this year since it cannot turn profitable in the current market. However, the company’s report confirms all other branches have posted a yearly increase in sales, bringing the total revenue to KRW18.8 trillion – the most LG has ever recorded between January and March.
|Mobile Divison Performance||Q1 2021||Q4 2020||QoQ Change||Q1 2020||YoY Change|
|Sales in KRW / USD||998.7B / 901M||1,385B / 1.24B||-27.9%||998.6B / 901M||0%|
|Profit in KRW / USD||-280B / -252M||-248B / -224M||-12%||-237B / -214M||-18%|
The biggest grower was the Home Entertainment division. People staying at home resulted in recovering demand in North America and Europe – traditionally profitable markets where LG managed to expand its sales of OLED and NanoCell TVs. The upward trend is expected to continue and will be centered around premium products.
The mobile business is already performing its swan song – the final attempt to salvage what is left before operations are discontinued later this year. During Q1 2021, LG managed to sell phones worth KRW998.7 billion, which is exactly the same as Q1 2020 down to the decimal point. There were no new models launched and actions were aimed at existing models.
LG will be redeploying all personnel within the corporation, going for a liquidation of assets, compensating partners and suppliers of service support.
All sales activities of the Mobile Communications division will be terminated at the end of July, and that’s when the Q2 report will be out, disclosing the final numbers, where LG will show a breakdown between continuing and discontinued operations.