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LG executive believes 5G could lead to mobile division profit next year
Recent forecasts point towards Q3 2018 being a record quarter for LG as a whole. Unfortunately, the company’s smartphone unit continues to bleed money and is on track to reach $400 million in losses by the end of the year. But despite this, LG Mobile President and Chief Executive Officer Hwang Jeong-Hwan expects a turnaround pretty soon.
Speaking to journalists in South Korea following the LG V40 ThinQ unveiling, the executive claimed that LG is one of just two or three companies that are currently capable of releasing a 5G-ready smartphone in time for the rollout of next-generation networks. This should hopefully result in an increase in sales throughout the first half of 2019. Additionally, brand awareness is set to increase as a direct result of this, something that could prove beneficial to the company in other smartphone categories. When all of this is combined, the executive claims a turnaround within the next year is a possibility.
Back in August, LG announced a partnership with Sprint wherein it will produce the US carrier’s first 5G-ready smartphone. Very little is known about this smartphone other than the fact that it will arrive within the first six months of 2019. Recently, though, Sprint did admit that the device would be both “shiny” and “distinct.” This would suggest that it won’t simply be an updated version of the V40 ThinQ or any other existing device.
Considering LG is nearing $400 million in losses for 2018, it may be worth taking these new claims with a pinch of salt. After all, in order to become profitable LG would need to cut costs dramatically or boost sales significantly. Anything is possible, though, so, for now, it seems only time will tell.
