LG has been clinging on still to its business of smartphones which has slowly been nearing its end. The new CEO of the company Kwon Bong-Seok who took over last month has promised that profitability is going to return to the mobile division of LG in the year 2021.
He further said while talking to the media that he believed he could make it profitable as the expansion in the mobile lineup of LG electronics is going to take place and release the new ones steadily attached with the factors which are going to make the customers buy it.
Kwon has not shared a lot of details on how he is planning to carry this resurrection of the business of smartphones out as the company has been losing money continuously for an estimated 14 quarters one after the other now. LG had sold 19 phone models in the year 2018 and 2019 as per the databases available. In the year 2014, the last time the division had been profitable, the company was producing 44 different models of phones.
The most profitable market is considered to be that of the high-end smartphones and LG has struggled seriously in the area for many years. Each year LG is seeming to follow similar patterns as it announces the earning call that its disappointed with the sales level of their current flagship and in the coming year it would release a new smartphone which is its flagship similar to the previous phones. All of these models are very similar to each other and only have a few little upgrades from one version to the next. LG has not gone into innovations when it comes to the design and the features.