It’s that time of the year again for companies to share their quarterly financial results. There’s usually some interesting findings in these reports, and Q2 2019 is no different for the tech world. LG and Sony have reported declining year-over-year sales (perhaps unsurprisingly), while Huawei is still showing growth despite everything that has transpired.
LG as a whole did really well in Q2, but the mobile division continues to flounder. The company reported a 21.3% drop in sales compared to this time last year, but a small 6.8% growth compared to the previous quarter. LG blames “continued aggressive pricing by Chinese brands” as one of the reasons for the drop. They are hoping to build upon the quarterly growth with new products and trendy 5G in Q3.
Sony is in a similar situation, though not as big of a drop. The company reported a 15% decrease in sales from Q2 2018. Sony is blaming the drop on TVs and digital cameras as well, but the mobile division is cutting costs to try to improve things. The pricing model of their high-end phones has most likely not helped the situation. Sony doesn’t release nearly as many phones as LG, which makes each one more important.
Next up is Huawei, a company that has been facing a lot of hurdles, but continues to pump out phones. They announced a 24% increase in smartphone shipments (118 million units) compared to the same time last year. Their carrier business also continues to do well, reaching CNY146.5 billion in revenue. Huawei says they have secured 50 commercial 5G contracts and have shipped more than 150,000 base stations to markets around the world.
All of this contributed toward CNY401.3 billion in revenue in H1 2019, a 23.2% increase over the same period last year. Despite everything that has been happening with the US/China trade war, Huawei continues to be a juggernaut in the mobile space. These numbers indicate that the company won’t be slowing down any time soon, no matter what the US government decides to do. LG and Sony, on the other hand, have a lot of work to do.
Want more posts like this delivered to your inbox? Enter your email to be subscribed to our newsletter.