LG has struggled in the smartphone market ever since its spot among the top-ranked Android OEMs was stolen by the up and coming Chinese manufacturers like Huawei, Lenovo, and Oppo. With the launch of the new G6 flagship, the company might be turning up a new leaf.
While its flagships have been getting generally stellar reviews for long, they were either held back in either the hardware department (G3 and G4) or in terms of gaining traction once it went out of its way (G5). Sure, on the G6 the software is still a bit clunky and design a bit vulnerable, but overall the phone is one of the more solid options available right now.
The pre-orders of the phone have helped the company shrink its long-held string of losses in the smartphone division down to $176,000 only. For reference, last quarter it lost $1 billion. The division showed an all-around improvement with shipments of 14.8 million units, up 10 percent compared to Q1 of 2016.
For the future, the company expects to have continued price-based competition in the mid-to-low end category, while the G6 will gain enough momentum to bring the division towards profitability.
Elsewhere, the company’s Home Appliance and Air Solutions, as well as the Home Entertainment division recorded the best ever figures in history, with a profit of $4.02 billion and $3.75 billion, respectively.
The vehicle components division also had a good quarter, where it recorded profit of $759.2 million, marking a sizable 48 percent increase in sales.
Overall, the company recorded a revenue growth of 2% compared to $12.7 billion compared with last year, while the operating profit reached nearly $800 million. Future margins could be affected by continued investments in R&D, though.