LG mobile phone has a bad outlook but will not withdraw from the domestic market

We just reported yesterday that there is news that LG mobile phones will withdraw from the Chinese market. Now LG spokesman clarified that LG is currently adjusting its mobile phone business and will not withdraw from China. Changes in the human resources of the company are caused by business reasons, but they will not affect the development of LG China.

The person told reporters that there will be new models of LG mobile phones next year, but there is no more relevant information released before the end of the adjustment period.

An LG insider told reporters that next year's LG mobile phone strategy will be the "core customer operation + online sales + operator focus" model, if successful, from February onwards will have five products in succession.

Delayed fighter planes According to media reports, LG Electronics’ mobile phone business has received notices of resignation from employees in 26 Chinese offices one after another. The layoffs mainly involve management and sales posts. Except for Northland and other first-tier cities that have retained more personnel, other provinces have only Keep the number of people to maintain.

Wang Li (a pseudonym), head of a Tianjin mobile phone chain store, told reporters that the store under his jurisdiction had stopped selling LG mobile phones a year ago and turned to other domestic brands. The LG mobile phone counters in several stores in South China also changed hands to domestic brands such as OPPO.

"LG is relatively early in the distribution of smart machines, but the support is not enough, and products and funds have not formed a virtuous circle." Wang Li said that this wave of smart phones up quickly, with some carelessness Will be thrown away from the market.

Previously, LG mobile phones surpassed Sony Ericsson as the world’s fourth-largest mobile phone manufacturer in 2008 by virtue of their design and R&D capabilities. However, they later missed an important period for the development of China’s 3G smart phones. At that time, LG chose to cooperate with Microsoft, but unexpectedly the Android system broke out in China. Until November 2010, LG began to launch a series of Android system mobile phones, which was already half a year later.

In 2010, the LG mobile phone business suffered a loss of 635.9 billion won (approximately 568 million U.S. dollars). Since then, although LG has made market adjustments, in the face of the highly competitive Chinese market, the “localization” strategy has not been effective, and the cooperative agents have gradually reduced to Aishide. In the domestic market, a number of research company's report data show that the share of LG mobile phones has fallen out of the top ten positions in the market.

"At present, almost all the country's business representatives are revoking promoters, and LG's products are relatively small. It is unrealistic to develop new agents. According to experience, this adjustment will involve products and scale, as well as channels and core customers. Not too pessimistic, of course, this depends on the attitude of the new managers." The LG insiders told reporters.

Three legs walk "Our customers still hope that LG can make some good products. After all, they earn money from LG products and believe that LG's ability to innovate." The LG insiders told reporters that the current LG Electronics internal preliminary The plan is to walk on three legs. Besides core customers, there are online sales channels and operators' channels.

"The LG headquarters staff this time alone to retain the operator qualifications is to develop operators and 4G-LTE products for the next step." The source said.

"LG actually has some product layouts. Like Optimus G, which is the flagship product of next year, it is ready to go from the end of February to early March. There are also several models that are dual card dual standby, and the L7 dual card upgrade specially designed for the Chinese market. , There are also cost-effective 5-inch VU listing.” The insiders emphasized that the flagship product is to create a fine line, while the dual card product is to impact the sales, if the marketing policy is in place, it is estimated that the second half of next year will be able to see some result. "The above LG insiders said.

The source also mentioned that people in the mobile phone industry in the country are experiencing a bitter winter. LG is now really difficult, mainly because of organizational adjustments and fewer products, but with the 40% growth rate of Chinese smartphones and the expansion of 4G next year, This should be an opportunity for the company to revive.

In response to this report, LG also emphasized that LG Electronics is the company with the largest number of 4G patented technologies in the world, and holds a leading share in many markets worldwide that support 4G networks.

At present, LG Electronics has 12 factories in China and employs more than 30,000 people.