The new flagship smartphone should help LG Electronics get out of the crisis, which does not allow the company to profit in the market for more than two years. An optimistic point of view is expressed by market observers, referring to the South Korean news agency Yonhap.

According to experts of Dongbu Securities, the losses of the mobile unit in the second calendar quarter of 2017, most likely, exceeded 100 billion won (86.5 million dollars). Quarterly operating losses in the mobile business could turn out to be the ninth consecutive year, as analysts blame the generally weak sales of phones and large marketing expenses for the promotion of the flagship model LG G6, released in March.

LG planned to sell about 2 million copies of the flagship smartphone G6, but the demand for it was much worse, said the publication without specifying the actual volume of implementation.

For two and a half years, LG's total operating losses reached 1.5 trillion won ($ 1.3 billion). The companies are hard at work in the smartphone market because of competitive pressures on all fronts: in the segment of expensive smartphones, Apple and Samsung unreservedly dominate, and in sales of budget devices, there is a growing pressure from Chinese brands. Experts suggest that the flagship model LG V30, which will be released later this year, will help the corporation return the mobile business to profit.

One of the main reasons for today's problems of LG in the smartphone market analysts consider the belated entry to it. After the emergence of the iPhone, Samsung Electronics quickly retraced the Galaxy S line, and LG took too long to develop its own gadgets. By the time the LG G and Optimus series appeared, Samsung and Apple had already dominated the industry.

"The global smartphone market is in a state of weak growth, and in the segment of premium devices there is a solid dominance of the two players," said analyst Park Kang-ho of Daeshin Securities. - LG Electronics is not easy to increase its share in the market of expensive smartphones. The success of the premium model is necessary for the overall increase in smartphone sales and the achievement of profitability ".

According to analyst Kiwoom Securities Kim Ji-san (Kim Ji-san), LG's telephone division can reduce losses in the third quarter due to lower costs for marketing and promotion of the LG V30. To other advantages of the manufacturer the expert has taken strong positions in the sector of smartphones of average price level and close cooperation with Google.

Analyst Kim Dong-won from KB Securities agrees that LG will be able to reduce cash losses after cutting marketing costs for the LG G6, as well as increasing the average cost of the tubes sold after the V30 appears in stores.