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LG News: Korean Electronics Company Records Big Loss for Q4 2016

By January 26, 2017 at 7:32 am
LG (Photo : Getty Images/David Becker)

Korean electronics corporation LG has just released its earnings report for the fourth quarter of 2016. Compared to Samsung's big boost by the end of last year, LG has recorded huge losses.

In a press release on the LG Newsroom, the company revealed that it saw a fourth quarter net loss of 258.80 billion won, approximately $223.98 million in 2016. This is the first recorded company-wide loss that LG has experienced over the past six years.

LG went on to explain that the losses were largely acquired from its mobile branch. While the company unleashed its G5 last year, it appears that fans weren't very much impressed with the device. The company was able to roll out 55 million smartphones for the entire year. Compared to 2014 that recorded a total of 59.1 million units, and 2015 when the company sold 59.7 million smartphones, there was obviously a huge drop.

The Korean tech giant is still moving forward despite its big 2016 loss. According to Tech Crunch Asia, LG is looking to improve its mobile sales with the release of the G6 this year. Leaked images of the upcoming G5 successor hint on a potential almost bezel-less design that fans are crazy over.

The outlet also points out that Samsung will not be unveiling its highly anticipated Galaxy S8 during the Mobile World Congress. LG is expected to unveil the G6 during the event. Samsung's absence from the conference could play well into its rival's hands. That is, if the G6 proves worthy of praise as it is rumored to be.

LG is also collaborating with Chevy in a project to produce an electric car. The details of the upcoming electric car have yet to be revealed but if things work out well, the new auto can potentially help raise revenues for LG.

LG Group was founded in 1947 and since then has become one of South Korea's biggest tech companies. Despite its big losses in 2016, fans are hoping that the company will pick itself up and once again go head-to-head with the likes of Apple and Samsung.

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