In a few days, LG will be marking a year and three months later after the company decided to shut down its mobile operations. The business decision was met with a lot of controversy, majority of the buying public not being too thrilled about the manufacturer’s devices.
The division had lost money for about five years, quarter after quarter, and consequently dragged down the balance sheet to the mud. Now, as the company reports second quarter earnings for 2022, the conglomerate seems very happy with the decision it made.
LG has logged in the highest revenue in its history for a fiscal Q2 at $14.7 billion, a 15% increase than what it had from the same period in 2021. The company is however, paying a lot more to make more as operating profits dropped by 12% to $607.9 million.
A reduction caused largely due to supply chain challenges and higher logistical costs. Given the business impact of the evolving state of the pandemic and economic conditions, LG is leveraging its comprehensive business portfolio, expanding sales from premium to mass-tier products and growing business-to-business areas such as auto parts.
LG’s home appliance and air solutions reported about $6.1 billion in revenue, the first time in LG’s history for a single business unit to exceed quarterly revenues of $6 billion dollars.
Although the company threw the towel on smartphones, it still making components such as cameras and displays for other corporations like Samsung. It’s also spearheading development for 6G network connectivity, but hey at least it’s not losing as much money as it did in the past.
Alfred Gitonga is a passionate tech news writer with a deep interest in smartphones and related technologies. He is a staff writer at Mobitrends.co.ke.
