LG has delivered slightly fewer TVs and far fewer smartphones in recent months due to the coronavirus outbreak. In the first months, the supply of parts turned out to be a problem, in March demand in the western world collapsed.
LG Electronics earned 34 percent less in recent months from the delivery of smartphones compared to the same period last year, the company reports. According to the South Korean company, this is mainly due to problems with deliveries from Chinese suppliers and manufacturers of cheap models. LG has some of its cheaper models developed by Chinese companies.
LG thinks it can improve its own position in the spring with the upcoming Velvet smartphone. The company expects a lot from the 5g phone. In addition, the manufacturer wants to improve its range of midrange smartphones.
The delivery of TVs yielded almost 5 percent less than in the same period last year. LG has nevertheless increased the margin of its TV division, allowing the company to earn more from TVs. It is likely that the cancellation of major sporting events this summer will also have an impact; this is traditionally a time when many people buy a new TV.
LG Electronics as a whole had a turnover of 14.73 trillion Korean won, or about 11.1 billion euros, a decrease of 1.1 percent. Operating income amounted to 823 million euros, which is 21 percent higher than in the same period last year.