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Sunday, November 29, 2020

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LG remains in the “pit”! Second quarter results were not surprising

The second quarter of 2020 (Q2) has passed and companies are starting to release their fiscal reports. Recently, LG shared its numbers, which unfortunately do not surprise or indicate that the company will not revitalize its smartphone department anytime soon.

LG’s mobile department posted a profit of $ 1.7 billion. This number represents an annual decrease of 18%, compared to 2019. The loss was 15.8%, which decreased compared to the previous quarter, which reached 23.8%.

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This is the 11th consecutive year of annual decline for LG. In fact, the last time LG had sales in such poor shape was in 2003.

LG missed a golden opportunity with the LG Velvet

After a few years in the “limbo” of the smartphone industry, LG unveiled the LG Velvet. This smartphone has mid-high end features and a contemporary design, with the touch of LG. It is an equipment that was not going to save the brand but could be a starting point for a better future.

However, all hopes ended with the price. LG announced the LG Velvet at a price of around 600 euros. This is an unacceptable value, considering the current smartphone market. LG itself knows this, so much so that it launched a version without the Qualcomm Snapdragon 765G, reducing the price but negating the 5G.

At one time, LG was one of the most relevant companies in the smartphone market, becoming a reference in photography. However, those times are over and it doesn’t look like they’ll be back anytime soon.

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