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This article was published on January 26, 2016

LG hopes its 2 new flagship smartphones will turn around its $35m loss

LG hopes its 2 new flagship smartphones will turn around its $35m loss
Owen Williams
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Owen Williams

Former TNW employee

Owen was a reporter for TNW based in Amsterdam, now a full-time freelance writer and consultant helping technology companies make their word Owen was a reporter for TNW based in Amsterdam, now a full-time freelance writer and consultant helping technology companies make their words friendlier. In his spare time he codes, writes newsletters and cycles around the city.

Being an Android phone manufacturer is pretty tough for anyone — ask HTC — but it’s not looking rosy for LG either, today reporting that it lost more than $35 million selling smartphones in a single quarter of 2015.

In its earnings report today, LG said that it lost 43.8 billion South Korean Won on its phone division last quarter, which is roughly a loss of $35 million USD over the holiday period.

The company sold more than 59.7 million smartphones in 2015, but that was a measly improvement of just half a million on the previous year. Sales were up in the US by 13 percent, but down in its native market by 10 percent.

LG was making a tiny profit on smartphones when it reported earnings last year up until the third quarter, when it started hemorrhaging millions of dollars. It’s unclear what changed at this point — sales appear to be about the same levels as previously — and LG doesn’t break down the numbers further.

As a result, the company says it’ll be introducing two “flagship” phones this year to increase profitability — a statement eerily similar to what HTC said when it reported poor earnings last year.

LG Earnings [PDF]

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