[Digital Times, Kim Ji-young] It is noteworthy whether the LG V30 will act as a rebound catalyst for the mobile (MC) business, which is sluggish in the second half of the year.

LG Electronics revealed on August 8 that it will send LG V30 invitation to launch its next smartphone `LG V30` and release LG V30 at Maritim Hotel in Berlin, Germany. The event will be broadcast live around the world with SNS such as YouTube and Facebook on the day.

LG Electronics is playing an important role in the mobile business for the V30. Among LG Electronics` major businesses, the loss of the smartphone business has always been a stumbling block to earnings. If smartphones are added to the consumer electronics and TV market, which already have the highest operating margin in the industry, earnings will likely be robust. The `G6`, released in the first half of this year, received favorable domestic and international acclaim, but its sales volume was less than the expected 2 million units. Accordingly, the Mobile Communications (MC) division, which handles smartphones, posted a loss of KRW 132.4 billion in the second quarter. LGE`s mobile business has been in a slump for nine consecutive quarters since the second quarter. Although the deficit goes up, sales generated by smartphones account for a large portion of sales in terms of trillions of won. If operating profit improves, it will be a driving force to boost overall LGE earnings.

The `V30`, which is being released this time, is a product that has been carrying out a task to raise up LG Electronics` smartphone business which is suffering from sluggishness. The company emphasizes the V30`s display and camera specifications. The company applied the 6-inch `OLED FullVision`, which fills the front of the LG V30. The OLED technology, which does not utilize a specific light source and emits its own light, is applied to smart phones. Here, the front and rear dual cameras were installed to enhance the shooting function.

The V30 is a situation that needs to be watched more to see if it will be a relief pitcher for the company`s earnings rebound. Samsung Electronics, which is the number one player in the smartphone market, plans to release the Galaxy Note 8 in September after its public event at the end of this month. Coincidentally, the two companies are expected to have the same or a slightly different provisional launch date.

Park Won-jae a researcher at Mirae Asset Daewoo, stated, "The problem is the number of smartphones sold but alternatives should be found.”

By Kim Ji Yeong kjy@


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