LG Electronics China Eyeing 4G Phone Market
Jan 04, 2013 (SinoCast Daily Business Beat via COMTEX) --
South Korean electronics giant LG Electronics will focus on China's 4G mobile phone market.
Moon-bum Shin, new CEO and president of it for the China region, said in an interview recently that the market would play a significant role in mobile phone business of it. It performed not well in the smartphone sector, but would not give up the market easily. China was expected to open up the 4G market in the second half of this year and based on a sharp edge in the field, it would embrace a sales upsurge undoubtedly.
People close to it disclosed that its production lines in Pyongtaek saw 90 percent of the production capacity be for smartphones and among the smartphones, 50 percent were 4G ones.
Zhang Yi, CEO of iiMedia Research, said that days of it in the market did be quite hard currently. On the one hand, it was under rising pressure from competition with homegrown Chinese mobile phone makers including ZTE Corp. (SZSE: 000063 and SEHK: 0763) and Huawei Technologies Co., Ltd. in the low-end mobile phone sector. And on the other hand, it had been laid far behind by Apple and Samsung Electronics in the high-end sector. Thus there was great possibility for it to slash business there before the coming of 4G. And during the period, it was likely to attach more importance to tapping markets including South Korea and other overseas markets.
Sources said at the end of November 2012 that LG Electronics China would lay off over 1,000 staff and according to a statement released by it recently, this had a close tie with its strategic adjustment and organizational structure optimization there, including channel mode optimization and localization of global best-sellers. It would advance a smartphone strategy and through optimizing organizational structure, it would well improve operating efficiency and strengthen comprehensive competitiveness. It would give up the low-end smartphone sector, focusing on the high-end one only.
It launched a high-end 4G smartphone namely Optimus G in South Korea at the end of September 2012 and the terminal, with a retail price of about USD 900 per unit, is a product launched to aim at the global market. The product debuted on the Japanese market in October 2012 and the US market one month later. It has not been introduced into the Chinese market and in line with people in the know, the firm is busy with related localization now.
Moon-bum Shin formally acted as CEO and president of LG Electronics China from January 1 this year.
(USD 1 = CNY 6.23)
Source: www.nf.nfdaily.cn (January 04, 2013)
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