Mobile: LG still believes in it and announces a return to profits in 2021

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At a conference given at CES 2020, the boss of LG Electronics announced that the mobility division of the Korean giant would finally stop losing money in 2021. The plan to do so, however, seems pretty wave.

For many years, the mobile sector of LG has been characterized by one thing: whatever happens, it loses money. Tens, even hundreds of millions of dollars are missing from the fund at the end of each quarter. However, the South Korean manufacturer refuses to abandon this market, taking advantage of the health of its other activities (household appliances, TV) to mop up leaks. And according to Kwon Bong-seok, CEO (general manager) of LG Electronics, the tide will soon turn. Giving a conference in Las Vegas as part of CES 2020, the man said that the division would see a return to profitability by the end of 2021.

Of course, the big question is how. Quite elusive, Kwon Bong-seok has Explain that LG would expand its range, and especially launch "regularly" new smartphones capable of surprising and seducing consumers. What functions does the manufacturer intend to bet on to create this surprise effect? No clue was given. If his strategy is based on regular outings, initial responses could however come soon enough. Indeed, LG has not drawn a new smartphone for the CES, but new flagships should be unveiled in February at the Mobile World Congress in Barcelona. We bet that the manufacturer will have in its boxes more than simple gadgets or the double screen already seen on the G8X ThinQ.

Recall that LG is still among the top ten smartphone manufacturers in the world, but with a market share of around 3%, the other South Korean giant is far from overshadowing Samsung, Huawei or Apple. During the last quarters, the ambitions of the mobile division were in line with this modest situation: the official objective was to reduce operational losses. In a sense, the goal has been achieved, the relocation of production from South Korea to Vietnam in particular to reduce costs. However, it will take much more to restart the machine. In the first nine months of 2019, sales indeed declined significantly.

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