The quarterly report is half-fig half-grape on the side of LG Electronics, which sees its revenue jump, but its sales decline in the smartphone market.
The company LG Electronics has unveiled very positive financial results for the second quarter of 2019, with a turnover of 13.4 billion dollars (12 billion) and an operating profit of 559.4 million.
Chinese mobile manufacturers are hurting LG
The increase in sales (+ 4.1%) is mainly due to the record profits generated by home appliances division LG Home Appliance & Air Solution , which returned $ 5.23 billion to the firm in the last three months. The division will have been driven in part by sales of air conditioners, which have been particularly busy with heat.
The sales of smartphones, they have clearly not been positive at LG. The division LG Mobile Communications Company generated revenues of $ 1.38 billion, down 21.3% year on year. The firm is paying stagnant demand in the market and maintaining aggressive prices of Chinese manufacturers, including Huawei.
LG has indicated that the transfer of its production from South Korea to Vietnam, coupled with a growing demand for 5G products, should put butter in spinach in the third quarter, according to the company's forecast.
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