According to their latest financial results, both Sony and LG’s smartphone divisions are struggling to sell devices.
LG’s Mobile Communications division reported sales of $1.38 billion a 21.3% decline compared to the same period last year.
LG said it expects improvement in the third quarter when new products launch and there is a greater demand for 5G products.
LG blames “slow sales of 4G premium models and intense market competition in mass-tier products” which dragged down its results in spite of the launch of its first 5G phone, the LG V50. Meanwhile, Sony reduced its annual forecast for smartphone sales from 5 million to 4 million units for this year, according to Bloomberg.
Sony reported $776 million in sales for its Electronics Products and Solutions division, of which smartphones are a part. This is a 15% decrease compared to the same period last year.
These declining numbers are especially concerning given the high profile launches we’ve seen from both companies during the reporting period. Sony released the Xperia 1, a super tall phone with a 21:9 aspect ratio screen, and LG had its flagship for the year, the LG G8, alongside its debut 5G handset.
