According to Han Lian the company reports, this week shows LG electron, as a result of with the competitive aggravate between large competitor, after experiencing old loss, this company will quit mobile phone professional work.
LG expresses in a superintendency file, section of its mobile business will be produced no longer after July 31 and sell a mobile phone, reason is this business is long-term low confuse and intense industry competes.
This decision is to be in LG company to represent its mobile business people to prospective operation " all possibility " after maintaining open attitude, two months make.
From 2015 since the 2nd quarter, the mobile business of LG is in deficit condition all the time. Up to last year, the deficit of accumulative total operation of this branch has achieved about 5 trillion Han yuan (4.5 billion dollar) .
Say according to the personage inside course of study, before LG sell with German masses Motor Corporation and Vietnam Vingroup JSC its smartphone business undertook negotiating, but the negotiation ends with failing.
LG expresses, exit mobile business to will be in short-term inside bring about company income to drop, but will be in finally long-term inside improve its financial standing and administrative efficiency.
The analyst expresses, if LG quits the mobile professional work of deficit, the business profit this year may add this company 1 trillion Han Yuan.
In recent years, LG is improving its shift business consistently, include to produce its smartphone base to transfer Vietnam, the bag outside expanding at the same time trades.
To carry brace up the sales volume of high-end smartphone, LG rolled out searcher project last year (Explorer Project) , this is the category of brand-new and mobile product that this company intention is providing the terminal unit that has different over all dimension and the mobile experience that upgrade, below this project, this company released Wing last year- - one is had can rotate the Shuangbing smartphone of the appearance, however the sales volume of this product not beautiful.
This year, LG plan has revealed on CES 2021 but curly OLED displays screen after the smartphone, undertake formally appearing on the market to this mobile phone put on sale. But, the report says, this company had cancelled this one plan.
The analyst says, the effort of LG can't reverse condition, on one hand, samSung electron and apple make his dim and blank in the dominant position of high-end market, on the other hand, be in cheap smartphone domain, this company also cannot contend with Chinese brand photograph.
NH investment and Koh Jung-woo of negotiable securities analyst express: "Of LG strategical smartphone type, be like Velet and Wing, all behave not beautiful, and go as the height of 5G impetus, this company had lost a base in high-end smartphone market, there is what the rest almost in the hand the card can be hit. Its but the attention that curly smartphone caused a trade on CES, enough is carried brace up its technology actual strength, but bring significant sale unlikelily. But bring significant sale unlikelily..
Study the data of company Counterpoint Research according to the market, LG is the whole world supplier of the 9th big smartphone, market share is 2 ％ , last year this company shipment 24.7 million smartphones, than 2019 the corresponding period dropped 13 ％ . (C114 Ai Si)
