LG – One of the biggest South Korean company saw a great surge in its electric appliances and televisions domain. The company collected a massive jump of 65% operating income during the second quarter.
LG said it recorded 17.11 trillion won in sales and 1.11 trillion won in operating income during the second quarter, which was a surge of 48.4% and 65.5%, respectively, from the previous year. The Q2 sales figure is LG’s highest for a quarter to date, with strong sales of home appliances and consumer electronics outside of South Korea being what carried the growth.
The company is also known best for providing top-quality display units. Its TV business earned 333.5 billion won in operating income, triple that of the previous year, thanks to the global TV market recovering from the drop in 2020 sparked by pandemic store closures. Although, its home appliance business contributed 653.6 billion won in operating income, over half its total operating income for the quarter.
Unfortunately, this past month, the company has decided to shut down its smartphone business as other smartphone companies are way ahead of LG. The decision came as the mobile phone division had been incurring severe losses for several years in a row. LG’s smartphone business didn’t take off and had cost the company nearly USD 4.5 Billion in revenue.
The company had invested a lot in their flagship stores, LG acquires over 450 stores in prime locations of South Korea. They are all well built, top-of-the-line flagship retail stores. LG is all set to sell Apple products in its official stores in South Korea which will definitely boost Apple sales. They are focusing more on other areas electric vehicles (EVs), smart homes, robotics, and artificial intelligence.
Since the focus is moved to other areas, the company says they are receiving great demands in electric parts too. In that particular product, LG’s vehicle component solutions business recorded a 103.2 billion won operating loss but sales doubled from the previous year.
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