Although LG's mobile phone business has previously performed worse than its home appliance products, and it may even have no plans to sell its new flagship G6 in the Chinese market this year due to product sales efficiency considerations, LG's financial report for the first quarter of fiscal year 2017 released earlier showed that its mobile phone business brought in a total revenue of US$26.1 billion, a 2% increase over the same period last year and a 4% increase over the previous quarter. It also sold a total of 1480 million mobile phones, a 10% increase over the same period last year.
However, the growth of LG's mobile phone business is not driven by the benefits of its flagship phones. In fact, the flagship G5 launched last year did not bring significant sales performance, and its modular design also attracted a lot of criticism. Therefore, LG did not continue to use the modular design in the subsequent flagship model V20. The new flagship G6 launched this year also maintains the traditional smartphone design, even using only the processor specifications launched last year, but further emphasizes camera shooting, screen display and audio listening effects.
Looking at the growth performance of LG's mobile phone business, last quarter's sales benefited from the launch of the V20 in the second half of last year, as well as the strong sales of several mid-range and entry-level models. This resulted in continued profitability in the US, Europe, and emerging markets, thus allowing LG's mobile phone business to grow against the trend.
In order to avoid the impact of Samsung Galaxy S8 and also because it was not affected by the priority supply of Qualcomm Snapdragon 835 processor, it first sold G3 in the United States in March this year, thereby attracting a user group that focuses more on user experience.
