LG’s smartphone sales have dropped 16%, its latest financials have revealed.
The South Korean manufacturer’s Q1 results saw mobile sales hit KRW 2.96bn (£1.7m), down from KRW 14bn (£8.4m) the previous quarter, while shipments fell to 13.5m units.
Revenue declined by 19%, which the business attributed to advance marketing expenditures for its latest G5 smartphone. LG has claimed that anticipation for the new device saw shipments for its other handsets decrease.
The flagship was announced at this year’s Mobile World Congress alongside a number of connected products such as a VR headset, a rolling camera and a 360-degree camera. LG’s most recent results did not include sales of the G5, with the manufacturer predicting stronger figures once the device is released globally. The device went on sale in the UK on 11 April.
Smartphone sales slowdown
The global slowdown in smartphone sales was also a key factor behind LG’s Q1 results, alongside increasing competition. This was something that LG’s UK mobile head has predicted will continue throughout 2016.
Speaking to Mobile at the close of last year Andy Coughlin said: ‘The market is tough, there is no denying that. Some players are struggling to maintain profitability and have moved out of segments that they deem too competitive.’
The combination of increased competition and waning device demand has been felt across the industry with heavyweights Apple and Samsung forced to adjust their 2016 forecasts.
Both rivals predicted that smartphone sales will be hit in the coming year, the proof of which has been felt most recently by Apple. The US tech giant’s Q1 results revealed the brand’s first revenue drop in 13 years, which CEO Tim Cook attributed to ‘strong macroeconomic headwinds’ as iPhone sales fell. Samsung managed to improve its outlook for the year through the success of its latest Galaxy S7 flagship, with its Q1 results exceeding expectations.