While LG is struggling to grow its mobile division, Samsung’s business in the industry is thriving. Both companies reported their financial results for Q2 2017 with very different tones.
Overall, Samsung earned $12.5 billion in operating profit on $54.2 billion of revenue. LG in its entirety earned $588.2 million in operating profit on $12.89 billion of revenue. Those results aren’t particularly surprising because, frankly, Samsung is much larger than LG. The profit you see for Samsung is actually expected to beat Apple’s for the last quarter.
Sales for the Galaxy S8 and Galaxy S8+ remained strong, rising above last year’s Galaxy S7 and Galaxy S7 Edge in “almost all regions” worldwide. The mobile division at Samsung was able to generate $26 billion while keeping $4 billion. The large reduction, according to Samsung, is due to the high component prices. Still, Samsung says it’ll now be able to crease the marketing budget for the upcoming Galaxy Note 8.
The performance of LG’s mobile division for Q2 2017, however, was far from being as positive.
LG was forced to share that its mobile division lost $117 million during the second quarter after generating $2.39 billion in revenue. The G6, the company’s 2017 flagship, experienced “weaker than expected” sales. Fortunately LG did report its non-premium segment improved 13% over last year.
We’re still about a month away until anything becomes official, but we have an idea of what’s next for these two. Samsung will announce the Galaxy Note 8 on August 23 in New York City. The Galaxy Note 7 experienced a scandal last year in which the phone was recalled and permanently discontinued. Because of that, the hype for the Galaxy Note 8 is massive. LG, on the other hand, is preparing the V30 to debut on August 31 in Berlin without too much hype.
Talk Android will be watching the launches of the Samsung Galaxy Note 8 and LG V30 live from their respective locations, so stick with us for continuing coverage.