Expansion of Mid-Price Sales in North and Latin America
3Q Revenue 1.5248 Trillion KRW, Operating Loss 148.4 Billion KRW
Operating Loss Reduced Compared to Previous Quarter and Same Period Last Year
[Asia Economy Reporter Han Jinju] LG Electronics MC Business Division reduced its deficit thanks to increased sales of mid-range smartphones in the North American market.
On the 30th, LG Electronics MC Business Division announced that it recorded Q3 sales of 1.5248 trillion KRW and an operating loss of 148.4 billion KRW. Sales increased by 16.51% compared to Q2 sales (1.3087 trillion KRW), and the operating loss decreased by 58 billion KRW from the previous quarter's loss (206.5 billion KRW). Compared to the same period last year, sales remained at a similar level, and the operating loss decreased by 12.8 billion KRW.
In Q3, sales increased compared to the previous quarter due to higher sales volume of mid-range smartphones in North and Latin America. Thanks to continuous business structure improvements such as global production site optimization, expansion of ODM (Original Design Manufacturer), and strengthening cost competitiveness, the operating loss decreased compared to both the same period last year and the previous quarter.
LG Electronics stated, "The global 5G smartphone market is expected to grow significantly, and we will consistently pursue business structure improvements by expanding sales through strengthening the 5G affordable lineup centered on key markets such as North America and Latin America."
LG Electronics launched the 'LG Wing', a smartphone with a different form factor from existing models, sequentially in Korea and the United States from early this month, and expanded the release countries to Europe and others. The LG Wing shipment volume is expected to reach about 100,000 units by the end of the year. The estimated smartphone shipment volume in Q3 is about 7 million units.
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