Affiliate links on Android Authority may earn us a commission.Learn more.
LG mobile division posts $126 million loss for Q1 2018, lays blame on new strategy
June 10, 2025
If you’ve been following LG’s financials over the past year or so, you may have noticed a trend where the wider company rakes in huge profits while the mobile division posts consecutive losses. Unfortunately for LG,that patternhas continued into 2018.
The company’sQ1 2018 resultsshow that LG Electronics posted an operating profit of 1.1 trillion won ($1 billion) for Q1 2018, compared to 921.5 billion won during Q1 2017. That’s a significant year-on-year improvement, and a big step above Q1 2016’s operating profit of 505.2 billion won ($468 million by today’s exchange rate).
The firm reported a 20 percent increase in operating income, making for the “highest first-quarter profit and revenue in company history.” The performance also translates to the “highest quarterly profitability” since Q2 2009, LG added.
It’s a different tale for the LG mobile division, however, as the unit posted sales of 2.16 trillion won ($2 billion) and an operating loss of 136.1 billion won ($126.85 million) for the quarter. By comparison, Q1 2017 saw the unitdeliver an operating lossof 200 million won ($185,000 by today’s conversion rate).
“Sales declined from the same quarter last year due to a revised smartphone launch strategy,” the company explained.
That strategy wasfirst revealedback at CES 2018, when LG Electronics CEO Cho Sung-jin said the company would release new phones “when it is needed.” The executive said it would also reveal more variants of the G and V series flagship phones. We saw the first major variant atMWC 2018in the form of theV30s ThinQ, packing more RAM/storage, as well as improved AI-related camera features compared to theV30.
The company is forecasting improved sales in the second quarter of the year, citing the upcomingLG G7 ThinQflagship and itssoftware upgrade centeras two major drivers. The new flagship will be officially revealed on May 2, but we already know it’ll pack a notch, asuper brightLCD screen, and a dedicated AI button. Other reported specs include a Snapdragon 845 chipset and dual 16MP cameras.
Read more:LG G7 ThinQ may have a notch, but new renders show 3.5mm jack too
The G7 will need to be a cut above previous releases if it hopes to turn the LG mobile unit around, however. The company’sQ2 2017 earningssaw a 132.4 billion won ($117.2 million) loss, owing to “weaker than expected” sales of theG6and other high-end handsets.
Thank you for being part of our community. Read ourComment Policybefore posting.
