LG Mobile Communications has struggled in recent years with constant losses and declining smartphone shipments. The situation was not that different in the second quarter of 2020, but for the first time in a long time, some positive trends were spotted.
The smartphone division at LG reported revenues of $1.07 billion (KRW 1.31 trillion) for the April-June quarter. Those numbers are down 18.63% versus the same quarter twelve months earlier, but that is actually not too bad considering the global pandemic.
Another positive trend noted by the South Korean company was profitability. The division experienced a loss of $169.10 million (KRW 206.5 billion) in the quarter.
The company said it reduced marketing expenses and unnecessary resources in line with the decline in sales to cut losses. It improved the cost structure of new models too, a practice that should continue into future quarters.
Looking at the current quarter, LG Mobile Communications expects global smartphone demand to partially recover after what it described as a “low point” in the second quarter. Competition is likely to intensify too as rival manufacturers launch new models and expand their mid-range lineups.