LG and Sony have very big problems with smartphone sales, the two companies reporting the fact that they recorded substantial decreases in Q2 2019 compared to Q2 2018, but it's not something we didn't expect. More precisely, LG's smartphone sales fell by 21% in Q2 2019 compared to Q2 2018, while for Sony we are talking about a decrease of almost 30% for the same periods, huge blows being received by them.
LG and Sony had small smartphone sales anyway, and what we are seeing now is a new very important decline for divisions that have been losing money for a very long time anyway. LG says that the weak sales of its phones are due to the very high competition in the area of premium phones, but even its first 5G phone, the LG V50, was not so successful, not even in South Korea.
LG and Sony are Transforming into the New Nokias on the Smartphone Market
Sony says that this year it will sell only 4 million smartphones, compared to the 5 million it initially estimated, but the good part is that it recorded a profit in Q2 2019 compared to losses in Q2 2018. Moreover, Sony expects that the losses of the mobile phone division should be reduced in 2019 compared to the previous year, but the profit will be very difficult to obtain in the context where there are many other cheaper Android phones that compete with its own.
LG and Sony launched many important products this year, but none of them stood a chance against competing products from Samsung, Huawei, Xiaomi, OPPO, Vivo, and more. LG and Sony invest a lot in the production of mobile phones, but unfortunately they are unable to bring truly attractive models to the market, and the lack of innovation keeps customers away, which is ultimately a big problem.
