LG gets back to basics for mobile rebound
LG Electronics mobile chief Cho Juno unveils the company’s smartphone business strategy, on the sidelines of this year’s Mobile World Congress (MWC), at the Melia Barcelona Sarria Hotel in Barcelona, Sunday (local time). / Courtesy of LG Electronics
By Lee Min-hyung
BARCELONA ― LG Electronics remains optimistic about its mobile unit’s goal of rebounding this year with its flagship smartphone, the G6, the firm’s mobile head Cho Juno said.
“We had so far focused too much on adding differentiated design or functions to our new smartphones, as LG is a latecomer in the smartphone industry,” Cho said at a press conference, Sunday (local time), held on the sidelines of this year’s Mobile World Congress (MWC) here.
This came after the Seoul-based tech titan launched the premium handset, which did not contain as many surprising features as its modular predecessor, the G5.
“What really matters for smartphones are fundamentals ― such as display size or battery,” he said. “That is why we adopted the 5.7-inch large screen for our new model, allowing our customers to enjoy more comfortable experiences.”
The remarks reflect that the firm’s mobile unit has failed to generate enough revenue to counter its premium market counterparts ― Samsung Electronics and Apple.
Suffering from the weak sales of its predecessor, the company reported an operating loss of 63.3 billion won ($55.8 million) last year.
It plans to start selling the device in Korea on Mar. 10, expanding its sales channels across the world later including the United States, South America, the Middle East and other Asian nations.
“It remains to be seen whether we will be able to make a turnaround in the second quarter, as we have to make massive investments in advertising across the world in April and May when the G6 shipments will surge,” he said.
“We have conducted a series of restructuring and relocations in production line relocations to remain more competitive with our smartphone,” the LG mobile chief said.
One of the firm’s key revenue areas is the U.S. where the firm is one of the top-three best-selling smartphone vendors along with Samsung Electronics and Apple.
“The V20, the latest device included in our premium lineup, is also gaining positive responses in the U.S.,” he said. “We have a solid brand image as a practical and user-friendly smartphone maker. We expect sales for the G6 to exceed that of the V20 in the U.S. in consideration of the fact that the latter targeted niche customers.”
About 70 percent of smartphone users in Korea and the U.S. buy premium devices. He said LG had established strong footing in the two key markets.