LG has announced that its mobile division will be closed this year as it cannot make a profit in the current market. However, according to the company’s report, the sales of all other branches are increasing every year, and the total sales reach 18.8 trillion won. This is the highest amount LG has recorded between January and March.
|Mobile division performance||First-quarter of 2021||Fourth-quarter of 2020||QoQ changes||First-quarter of 2020||Year-on-year change|
|Sales in KRW / USD||998.7B / 901M||1,385B / 1.24B||-27.9%||998.6B / 901M||0%|
|Profit on KRW / USD||-280B / -252M||-248B / -224M||-12%||-237B / -214M||-18%|
The largest producer was the home entertainment sector. People at home have regained demand in North America and Europe. This is a traditionally profitable market where LG has succeeded in expanding sales of OLEDs and NanoCell TVs. The upward trend is expected to continue, and we will focus on premium products.
The mobile business is already playing a swan song-the last attempt to save what’s left before it shuts down later this year. In the first quarter of 2021, LG sold a phone worth KRW 998.7 billion. This is exactly the same as in the first quarter of 2020, after the decimal point. No new model was released and the action was targeted at existing models.
LG will relocate all personnel within the company to liquidate assets and indemnify partners and service support suppliers.
All sales activities in the mobile communications division will end at the end of July, the second-quarter report will be released and the final figures will be disclosed. LG shows the breakdown of continuing and discontinued operations.