The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    BTS producer encourages anticipation for future messages from group

  • 3

    From hip-hop idols to global superstars, BTS shatters records over decade

  • 5

    LIFE'S OLLE TRAILS 1How hiking Jeju's 437km of trails changed my life

  • 7

    Korea beats Nigeria to advance to semifinals at FIFA U-20 World Cup

  • 9

    Korea sees record-high number of flu patients for late spring

  • 11

    3 EXO members file antitrust complaint against SM Entertainment

  • 13

    Baritone Kim Tae-han wins Queen Elisabeth Competition

  • 15

    Korean bio firms to seek new opportunities at int'l convention in Boston

  • 17

    Shipbuilding stocks rally over hope for 'super cycle'

  • 19

    Deep-rooted problems push nurses to handle doctors' duties

  • 2

    Senior citizens land low-wage jobs after retirement: report

  • 4

    Korean shorthairs among favorite cat breeds as more people choose to adopt pets

  • 6

    Tom Cruise to visit Korea to promote new film

  • 8

    S. Korea, Japan agree to prevent recurrence of maritime dispute

  • 10

    Korea denies discussion with EU on sending ammunition to Ukraine

  • 12

    Election watchdog under fire for refusing to accept inspection

  • 14

    Concerns rise over Samsung SDS' growing intra-group transactions

  • 16

    K-food transforms global culinary industry

  • 18

    Korea, Japan agree to hold working-level talks to prevent repeat of 2018 maritime incident: Seoul's defense chief

  • 20

    Busan Film Festival accepts director Huh Moon-yung's resignation

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
Tue, June 6, 2023 | 05:34
Tech
LG's G5 sales stalling in Chinese market
Posted : 2016-05-15 17:03
Updated : 2016-06-02 10:25
Lee Min-hyung
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
Visitors to this year's Consumer Electronics Show (CES) Asia pack a Huawei booth, at Shanghai New International Expo Center in China, Thursday. More than 370 global companies participated in the regional technology tradeshow this year./ Korea Times photo by Lee Min-hyung
Visitors to this year's Consumer Electronics Show (CES) Asia pack a Huawei booth, at Shanghai New International Expo Center in China, Thursday. More than 370 global companies participated in the regional technology tradeshow this year.
/ Korea Times photo by Lee Min-hyung

By Lee Min-hyung


SHANGHAI, China ― LG Electronics' modular handset ― the G5 ― has reached an impasse in the Chinese market, as its "vague" positioning strategy adds to an already gloomy picture for the firm's mobile business here, according to local industry insiders.

The Korea's No. 2 electronics giant launched the new smartphone in Asia's largest market, last month. Lee Hye-woong, the firm's China business chief, expressed confidence that the device would be a "mega-hit," playing a crucial role to end years-long underperformance of its mobile unit.

But experts and market insiders here remain skeptical over its potential rebound unless the firm shifts its positioning strategies and diversifies its products lineups, rather than focusing on a few premium devices including the G5.

"Some premium handset makers, including LG, have had a tough time in the Chinese market, as they have failed to catch up with local trends and needs," Steven Lee, a marketing expert at Alibaba Group, the operator of China's largest online retail service, Tmall, told The Korea Times, on the sidelines of this year's Consumer Electronics Show (CES) Asia 2016, Thursday.

The remark reflects that LG's bet for a modular device ecosystem came as no surprise to Chinese customers offering options that include products from more than 200 local handset manufacturers.

"It is true that the handset market fluctuates at all times, but smartphones without localized functionalities cannot succeed here," he said.

LG Electronics was ranked 16th in the Chinese smartphone market share during the fourth quarter of last year, according to U.S.-based market researcher IHS. Xiaomi was the first with 16.7 percent, followed by Huawei with a slim margin during the same period.

Samsung came in sixth with 9.4 percent of share, with LG holding only 0.02 percent.

This is a stark difference from LG's global profile where the company was No. 5 with 13.5 percent of smartphone market share in the first quarter this year, according to recent data by Counterpoint Technology Market Research.

IHS analyst Jusy Hong said, "Chinese handset makers have achieved technological leaps forward from economies of scale in recent years."

"Their technological standard has reached a global level. On top of that, they have expertise in cost reductions, making them highly competitive in their hometown," said the expert.

He also cited smartphone distribution channels in China as another key factor leaving premium handset makers in a tough time in the Chinese market.

"In China, only some 30 percent of smartphones are distributed by mobile carriers, with the rest selling on retail channels online and offline. This means most customers cannot benefit from carriers' subsidies, leaving people less motivated to buy expensive premium devices," he said.

This is why high-end devices are less popular than budget or mid-end ones in China, according to the analyst. The G5 sells at $734 in China at the same price of its Samsung counterpart Galaxy S7.

Another industry source in China, asking not to be named, said: "LG does not have diverse handset lineups, leaving the company less competitive than its Chinese counterparts including Huawei and Xiaomi."

For example, Xiaomi unveiled on Tuesday its new handset Mi Max in a bid to expand its footprint in the mid-end market. The 6.44-inch handset sells from $230 (269,000 won) here. Huawei, the bitter rival of Xiaomi, also introduced diverse products, ranging from low-end to high-end ones, at its booth at the CES Asia.

A Huawei official said, "Huawei has technological expertise and can manufacture our devices on our own, which is the biggest difference from most other Chinese handset makers which outsource some manufacturing processes. due to a lack of technology."

Local media also expressed concerns over LG's positioning strategies.

Wealthy Chinese people tend to prefer Apple or Samsung smartphones, but most of the public buy "Made-in-China" handsets, due to their low price and relatively decent functions, according to Beijing Business Today. But LG's G5 cannot compete with its Apple or Samsung counterparts, in terms of brand power. But LG sticks to the premium device market, leading the firm to lose more ground to local handset makers, the daily added.

Emailmhlee@ktimes.com Article ListMore articles by this reporter
 
wooribank
Top 10 Stories
1Korean shorthairs among favorite cat breeds as more people choose to adopt pets Korean shorthairs among favorite cat breeds as more people choose to adopt pets
2[ANALYSIS] S. Korean economy feared to follow in Japan's footsteps ANALYSISS. Korean economy feared to follow in Japan's footsteps
3Agency launched to offer exclusive support for overseas KoreansAgency launched to offer exclusive support for overseas Koreans
4Retailers use recycled, biodegradable plastic to attract eco-conscious consumers Retailers use recycled, biodegradable plastic to attract eco-conscious consumers
5Retail investors bet on wrong horse despite KOSPI rallyRetail investors bet on wrong horse despite KOSPI rally
6Embassy of Italy celebrates Republic Day Embassy of Italy celebrates Republic Day
7HD Hyundai, Hanwha Ocean to compete in Busan to sell naval ships HD Hyundai, Hanwha Ocean to compete in Busan to sell naval ships
8Korea's export dependency on China dips below 20% Korea's export dependency on China dips below 20%
9Stats agency to use Naver's AI chatbot to offer tailored data for firms Stats agency to use Naver's AI chatbot to offer tailored data for firms
10Ex-BOK economist to head KCCI's think tank Ex-BOK economist to head KCCI's think tank
Top 5 Entertainment News
1[REVIEW] 'The ODD Of Love' concert: Taeyeon shows why she is among K-pop's top vocalists REVIEW'The ODD Of Love' concert: Taeyeon shows why she is among K-pop's top vocalists
2Baritone Kim Tae-han wins Queen Elisabeth Competition Baritone Kim Tae-han wins Queen Elisabeth Competition
3Busan Film Festival accepts director Huh Moon-yung's resignation Busan Film Festival accepts director Huh Moon-yung's resignation
4[INTERVIEW] 'One Day Off' star Lee Na-young, director on creating subtle, feel-good series INTERVIEW'One Day Off' star Lee Na-young, director on creating subtle, feel-good series
5'HyeMiLeeYeChaePa' producer Lee Tae-kyung hopeful of second season 'HyeMiLeeYeChaePa' producer Lee Tae-kyung hopeful of second season
DARKROOM
  • Turkey-Syria earthquake

    Turkey-Syria earthquake

  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group