LG Electronics’ mobile business remained mum on the sales figure of its latest 5G smartphone LG Velvet at its conference call for the second quarter.
Asked on the rumors that the Mobile Communication business, LG’s name for its mobile business, was facing another restructuring going forward, company executive Seo Dong-myung didn’t deny the allegation and said the business was continuing its efforts to improve profitability such as expanding the use of original design manufacturers (ODM).
“Our efforts to improve the profit structure is beginning to show some results,” Seo said. “We are continuing to put in efforts for a turnaround so please view us with a long-term perspective.”
There was also no mention of the sales figure for the LG Velvet smartphone, which the company has called a “mass premium” model. This contrast with compatriot Samsung Electronics, which announced its second quarter earnings on the same day, who did announce its smartphone sales and average sales price (ASP) of units.
Seo also declined to mention the precise break even point for its sales. The executive said LG expected market conditions to improve in the second half of the year and it will improve its profits and sales accordingly.
On the suggestion that perhaps LG should sell budget model, 5G smartphones priced between US$100 to US$200 made by ODMs in the US market, Seo said the company has already launched such models in the US that was being received well there.
LG will apply its own unique form factor for 5G smartphones priced over US$1,000 and at the same time collaborate with ODMs to launch budget model 5G handsets to secure the mass market, Seo said. The company also welcomed Apple launch of a 5G-enabled iPhone later this year, saying it would expand the 5G market.
LG’s mobile business posted operating profits of 206.5 billion won and sales of 1.3087 trillion won in the second quarter. It is its 21 straight quarter of loss.