Both Samsung's and LG's mobile businesses are looking grim

Both Samsung's and LG's mobile businesses are looking grim

The two South Korean consumer technology giants have posted financial results for Q1, 2019, and it's not looking too good for the Samsung and LG, at least in terms of their respective mobile businesses.

Let's start with Samsung. The headline here is that operating profit is down 63 percent compared to the same period last year. Revenues were also down by 20 percent, with Samsung pulling in just KRW 52.4 trillion (about $45.1 billion) compared to the $56.5 billion is brought in in Q1 2018.

In the past, Samsung has been able to cover for the slowdown in its mobile business with strong sales in its chip business, however, both NAND and DRAM sales were down. Samsung posted revenues of KRW 14.47 trillion (about $12.45 billion) for Q1 2019, and attributed the decline to "macroeconomic uncertainties, weak seasonality and inventory adjustments by datacenter firms". Samsung's display business also posted a loss.

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According to Samsung, S10 sales have been strong. / © NextPit

Samsung does say that sales of its Galaxy S10 line have been strong, but with the delay to the previously imminent Galaxy Fold now confirmed, its mobile business is in a bit of a tight spot.

The news is not much better over at Korean rival, LG. The LG Mobile Communications Company posted first-quarter sales of KRW 1.51 trillion (about $1.34 billion) which did at least narrow its quarterly operating loss to KRW 203.5 billion (about $181.05 million). That's still a lot of money to be losing, though.

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Can the LG V50 turn things around for the company? / © NextPit

LG says that it is continuing to rebuild its smartphone business and that, looking ahead, it is hoping the launch of losing $700 million a year.

So things are not so rosy for the mobile business in Korea, then. Can these two giants turn it around? Let us know what you think in the comments below.

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3 comments

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  • storm May 1, 2019 Link to comment

    I've been unimpressed with the phones were both of them for the last few years. Glam for glam sake and astronomical pricing. and without real innovation or improvement.

    Apple and Samsung have missed the commodification bus that's bringing price and performance to half the price point of their bread and butter products.


  •   25
    Deactivated Account Apr 30, 2019 Link to comment

    With that kind of software update policy LG can never boost its sales.

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