LG is one of the renowned brands of its time however with time it has gained a lot of popularity when it comes to electronics, but when we consider the smartphone business of this South Korean brand, it is only losing its charm. According to the Counterpoint Research regarding the global smartphone shipments during Q3 2020, LG stood at the ninth position while other brands like Huawei, Xiaomi, Oppo, Vivo and Realme surpassed it, showing a financial loss for the 22nd consecutive quarter. The struggling of the LG Smartphone Division is not new for us.
Now, after a long time, LG has realized its deteriorating position in the smartphone market and is trying to recognise its struggling mobile division. The recognition will not only help LG recognise its name in the market but will also increase its profitability.
LG Smartphone Division- Another Failed Step towards Generating Revenues
This is not the first time that LG has announced something new for promoting its smartphnoe line but this time there is a change in the strategic plan. The new plan focuses on putting the money on unprofitable and unsuccessful smartphones that lie in low to the mid-end range.
Though LG will spend money on budget-friendly handsets, the company will not produce more handsets. As a substitute, the company will hire an unnamed original design manufacturer who will be given the task of producing lower-cost devices, helping LG to lower its cost of manufacturing or reduce the profit.
LG need to compete with Chinese smartphone brands like Huawei, Xiaomi, Oppo and Vivo which have become giants in just a couple of years eating the revenues of small brands like LG, HTC and Sony etc. Though LG is trying to boost up its revenues by this new idea, the analyst believes that there are no optimistic chances of LG to get successful. The reason behind it is that Chinese smartphone brands are smart enough and has superior and unique marketing skills which help them shine as a differentiator.