LG has announced an increase in revenue in this second quarter of 2022 of up to 15% compared to last year following having closed its cell phone manufacturing division.
According to its own financial results, LG had revenue of 19.2 billion Korean won, regarding 14.7 billion dollars, the highest number for a second quarter in the company’s history.
LG alza
In accordance with LG, the strong business has been the sale of household appliances in a key market and growth in the vehicle components market. Only in the first case, LG broke sales records to date with over 8 billion won in revenue.
Of course, not everything has been green, since operating profits for chipsets have fallen by 12% compared to last year, possibly influenced by the shortage of these semiconductors in the world.
And no cell phones
A year ago LG officially retired from the cell phone industry, since it was a market in which he was losing a lot of money quarter following quarter. In 2020 alone, its cumulative operating loss reached 5 billion won (US$4.4 billion).
The smartphone business LG it peaked in sales in 2014. At the time, it had secured a market share second only to Samsung Electronics in South Korea and Apple in the United States, but continued to fall back in form being pushed by advances from Chinese companies. What Huawei, Xiaomi y OPPO.
When announcing his departure, the company indicated that it was going to strengthen other areas with greater projection for the future.
It is possible that LG It’s still doing smartphone-related work — it’s making components for them, like cameras and screens, it’s selling phones on its 5G network in South Korea, and it’s working to lead the development of the 6G standard — but at least it’s not necessarily losing out. as much money as he did when he was fully manufacturing them.
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