LG Scales Down Mobile Amidst 3 Million LG G5 Sold

Posted: May 25 2016, 12:28am CDT | by , Updated: May 25 2016, 10:21pm CDT, in News | Latest Business News


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LG Scales Down Mobile Amidst 3 Million LG G5 Sold

The South Korean Electronics giant LG has cut 10% of the workforce in its mobile business unit.

LG Electronics has sold 3 million LG G5 smartphones since the launch of the modular smartphone in late March. The noteworthy success has not led to a profitable quarter for LG's mobile unit. According to the latest filings, LG has cut 10% of its 8,000 workers in the mobile unit since last year.

LG is under pressure by the sea of Chinese smartphone startups that flood the market with new smartphones. LG has so far not been able to gain a strong foothold in China, one of the most important mobile markets.

Overall LG Electronics is in good shape, but the mobile unit declared a loss in Q1 of 2016. The outlook is also not bright. According to Korea Times, LG is seeing the automotive market as the next cash cow for the company. LG more than doubled the employees in the LG Automotive unit to about 4,000 in one year. This is still a rather new effort from LG and is not adding to the bottom line yet.

A deal with GM is predicted to have an impact on revenues end of 2017.

The smartphone market has gotten very tough and it makes a lot of sense for LG to look into other growth segments. The car segment is where also Apple sees the next big growth opportunity.

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<a href="/latest_stories/all/all/2" rel="author">Luigi Lugmayr</a>
Manfred "Luigi" Lugmayr () is the founding Chief Editor of I4U News and brings over 25 years experience in the technology field to the ever evolving and exciting world of gadgets, tech and online shopping. He started I4U News back in 2000 and evolved it into vibrant technology news and tech and toy shopping hub.
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