Last year, LG set a record for itself by shipping 14.5 million smartphones. A year later, citing an “extremely challenging environment”, the company is reporting a decrease in smartphone shipments and sales.
In Q2 of this year, LG recorded sales of $12.69 billion USD (KRW 13.93 trillion) across all of its business operations, which represents a 7.6 per cent decrease from the same period last year. Specifically, the company’s smartphone division saw sales decrease by 1 per cent to $3.33 billion USD.
The fall off in sales is the result of a similar decrease in shipments. In Q2, LG shipped 14.1 million smartphones, which was a “modest” decrease of three per cent from last year. The company blamed “weaker demand in the premium segment in the domestic Korean market” for the drop off.
It’s not all bad news for LG, however. Revenues derived from the North America market increased by 36 per cent over the past year due to better performance from the company’s mid-range smartphones. LG also mentioned it sold a record 8.1 million LTE-enabled smartphones in the quarter.
Heading into Q3, LG says it will attempt to reclaim its power in the industry and plans to “aggressively implement its dual strategy” that will focusing on premium devices, such as the LG G4, and launch a number of mid-range smartphones targeting to emerging markets.
Review: LG G4 Review