There are two South Korean giants whom are considered one of the top leaders in electronics business all over the world. We see every year these two brands competing out of their home country to take over the world with their innovative technologies. The first quarter of this year has proved to be less magnificent for the LG when talk about the Mobile Communications business, i.e., Smartphones.
Like other big brands, LG also released a report to the media about its sales revenue for the Q1 2016. There we learned that the company has suffered a huge loss in sales figure, and thus a significant drop of 19.3% drop when compared to the Q4 last year. The loss is at 15.5% when compared with Q1 2015. Whereas compared to other businesses of a company such as Home Appliances, Home Entertainment and Vehicle Components, the Mobile Communication was a big letdown.
LG is not the only manufacturer experiencing drop in sales revenue, as companies like Sony and Apple has seen sink in their sales figures. It is quite shocking that despite good feedback for the iPhone, the Cupertino couldn’t score as much as revenue they did last year for the same quarter. Whereas it wasn’t quite shocking to see sales of Sony handsets decline, because the brand has totally lost the touch of the market and had failed to impress consumers with its premium Xperia phones.
On the other hand, Samsung reported an impressive jump in the sales revenue for the front quarter of this year, when compared to last year. All thanks to the Samsung Galaxy S7, as the handset has received positive feedback from consumers and experts. It has been a huge relief for the brand as their last year’s flagship, the Galaxy S6, had a bad response even from the core fans.
Maybe the reason behind this could be that LG didn’t start selling the G5 handset until April 1st. We have seen the company spending a lot of bucks in making sure that everyone knows about their handset. As the brand has teamed up with Hollywood celebrity Jason Statham, who is promoting the LG G5 in all their adverts. Only the coming quarter would tell if the money spent on their flagship handset is going to pay off or not.