LG mobile phone business transformation: abandoning high end price to return to China

2018-07-11

LG mobile phone business transformation: abandoning high end price to return to China

Tencent technology news in the global smartphone market, Chinese manufacturers and Samsung Apple has formed a “sandwich” market structure, many in the middle of the enterprise is very difficult to survive, many enterprises have stopped business transformation.

South Korea’s LG electronics is also caught in the middle of one of the enterprises. According to the latest news of the foreign media, facing the loss dilemma of mobile phone business, LG does not choose to stop production and shutdown, but will change its business strategy, turn from high-end mobile phone to cost-effective, and will also return to the Chinese market.

Over the years, LG electronics’s smartphones have been recognized by the industry, and the company is often able to make major innovations, including the first launch of modular phones. But in general, LG phones are high-end, Samsung apple is regarded as an opponent, and too high prices hurt its global market share.

Earlier this year, South Korean media reported that LG Electronics was reflecting on the failure of the mobile phone business and might abandon the high-end market.

According to the Korean Herald website, LG electronic executives have confirmed the above transformation strategy. Recently, the company launched a new mobile phone G7 ThinQ, the relevant executives also introduced to the media the future of mobile phone business ideas.

“Our main focus now is to offer better phones at lower prices,” said Huang Zhenghuan, the new head of LG’s electronic business.

LG’s new mobile phone, which supports artificial intelligence and other functions, will be sold in South Korea, the United States, Europe, Latin America and other places this month, but the price is not announced.

The executives said the company would consider a variety of market factors and set a reasonable price for the mobile phone. “Although we continue to lose money, we are not ready to get profits from the new product immediately.”

It was reported that at the end of last year, Huang was appointed as the new head of the mobile phone business, and his major challenge was to take a new business model to reverse the company’s long-term loss of mobile phone business.

When asked by the media whether he would launch a new cell phone in the Chinese market, the official said he was preparing for the return to the Chinese market. “We want to use Hongkong as a springboard to enter the mainland market in the future, and in order to promote sales, LG South Korea’s sales department will be responsible for Hongkong and Mainland China this year,” he said.

According to Korean media, in the face of the long-term loss of mobile phone business, LG has already questioned the need for mobile phone business to continue. However, the company executives are still not ready to give up, hoping to continue to gain market share.

According to reports, in the past two years, LG mobile phone business has been losing money, and the loss in the fourth quarter of last year was as high as 200 million US dollars.

In China, the largest smartphone market in the world, LG has had a certain influence in the past, but LG, like Samsung Electronics, is rapidly disappearing from the perspective of consumers. Among them, Samsung Electronics’s latest market share has dropped to less than 1%, becoming a “victim” of the integration of China’s mobile phone market.

The “sandwich” collapse

In both China and the global smartphone market, there is a trend to centralize the giant. Samsung Electronics, apple, and China’s four largest mobile phone manufacturers (OV) control more and more share, and other vendors have more space to survive.

LG is not the only mobile phone maker in trouble, and the Japanese Sony Corp’s mobile phone market share has also shrunk, but SONY has not given up the business.

HTC, in Taiwan, China, used to locate high-end phones in the past, but it was defeated under the pressure of Apple Samsung, and cell phone sales and business income fell sharply, and the company’s market share was close to zero.

Industry and media believe that if HTC wants to win in the VR gamble, they have to focus on resources, that is, to give up the failed mobile phone business.

Before the Canadian BlackBerry company completely abandoned the smartphone market, the company’s trademark was licensed to a mobile phone manufacturer in Guangdong, China.

Microsoft Corp, who has bought $about 7000000000 for NOKIA mobile phone business, has also suffered a major setback. The company’s mobile hardware and mobile operating system plans have failed. Microsoft has no longer developed the company’s important software for its own mobile operating system, and its own mobile phone has stopped selling. . (synthesis / dawn)

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