LG deploys smartphone strategy: wants to regain the world's third largest manufacturer

According to Reuters, LG Electronics plans to expand its smartphone line this year, making sales growth twice the market average and trying to regain the position of the world's third-largest manufacturer. Last year, LG mobile phone market share fell to less than 5%, behind Huawei. On the eve of Barcelona's upcoming World Mobile Communications Conference (MWC) this week, Park's president of the company's mobile division, Park Chung-sik, told reporters that LG also plans to sell smart watches that can be connected to competitors' mobile phones.

LG plans to increase the number of models to attract a wider range of consumer groups to increase sales.

Last year, LG sold a record 47.7 million smartphones, an increase of 81% year-on-year. However, in order to narrow the gap with market leaders Samsung Electronics and Apple, LG has invested heavily in marketing, so the mobile sector needs to continue to grow in order to return to profitability. The company plans to increase the number of models to attract a wider range of consumer groups to increase sales.

LG will release the G2 Mini in Barcelona, ​​the low-priced version of its flagship G2, and just a few weeks ago the company just released a larger G Pro2. Park Chung-soo said: "It is expected that the second-tier manufacturers will compete for market share this year, the competition will be more intense, and the price competition will naturally increase." He said that because this year will continue to invest heavily in high-end products, LG mobile department will take some time. profit.

Park Chung-sik said that sales growth of high-end models in developed economies is slowing down, as smartphones are more popular, and the average market growth rate this year may be 10-15%. According to IDC, global smartphone sales increased 38% to 1 billion last year.

Park Chung-sik also said that LG plans to continue to reduce its dependence on local Chinese retailers. LG must also compete with Chinese local companies Huawei, ZTE and Xiaomi for low-cost markets. He said: "In China, we have promoted sales growth through investment in retail channels, but this proved to be very costly. At the end of 2012, we changed our strategy and focused on high-end models. We plan to drive sales through cooperation with operators."

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