We all know that LG is quitting its smartphone business since it has failed to produce profits for a long time. And to no surprise, the company made a huge loss of KRW 280.10 billion ($251.63 million) in the first quarter of 2021. In the previous two quarters, the loss stood at KRW 1.39 trillion and KRW 248.5 billion.
Luckily, the company’s home appliances and home entertainment products remained popular, and the company made a whopping profit of 39.1% to KRW 1.52 trillion ($1.36 billion). The company’s sales revenue also surged by 27.7% in Q1 of 2021 to KRW 18.81 trillion ($16.90 billion).
According to Phone Arena, the company’s year on year profit declined 28%. The company blamed its smartphone line of business.
Although the company is exiting the smartphone business, the company promised to roll out Android updates for a little while.
Once, LG was the world’s third-largest smartphone maker by shipments. But for the past six years, the company has been facing a downward trend where it has failed to keep up with the smartphone business.
The company is now exploring new realms, including electric-vehicle components, smart homes, and artificial intelligence. And it will also continue to work on some smartphone technologies such as cameras and sixth-generation networking.
It has been a long time since I joined Research Snipers. Though I have been working as a part-time tech-news blogger for the past few months, it still feels good to be part of the team. Besides this, I am working with a Canadian-based real estate business and running my own financial blog.