Technology company, LG Electronics is set to improve its Television business to offset the shortfalls in its mobile phone segment.
According to a report, the company had recorded huge sales decline in its mobile phone division for 15 consecutive quarters despite launch of new premium products.
LG in a statement attributed the loss to weak global smartphone demand and intense competition.
The report revealed that revenue
at its mobile business division fell 24 per cent year-on year to $1.79 billion representing 13.2 per cent of its total revenue in Q3 2018 compared with 17.6 per cent in Q3 2017.The backward trend continued in Q4 2018 as sales dipped further.
The company said it increased its marketing spendings to support the launch of its new product during the peak season and reduced channel inventories. It added that its business structure had improved through better material cost controls and overhead efficiencies based on platform modularisation strategy.
LG said it has resolved to push 5G products and smartphones boasting unique features as well as focus on key and operator- driven market such as North America and South Korea, where the brand has market edge.
The report also noted the company intends to focus more on premium OLED Television and large screen ultra-HD Television for both revenue and operating profit growth.
Meanwhile, LG Phones have continued to struggle with competition in Nigeria. Its flagship, G7 ThinQ, parades latest sophisticated feature but still doesn’t wet market appetite as the likes of Samsung S9, IphoneX, Google Pixel 2, and other high-end products.