In a significant development, LG has reportedly decided to bid adieu the Chinese smartphone market due to slump in the overall sales. The company posted poor financial results for the Q4 2017 accounting to a loss of $192 million. The main reason for the slowdown of LG smartphones is due to the growth in the competition between budget Chinese smartphone companies such as OnePlus, Xiaomi, Oppo and Vivo.
If you look at the pricing structure of LG smartphones, they are expensive. Moreover, the budget devices are not that much trendy and lack periodic updates. When companies like Xiaomi are pushing updates once in a while, LG usually releases updates once in one year. Nowadays, we are unable to see any news about the pushing of updates for LG branded devices.
A representative of LG Beijing office, who declined to reveal the name has categorically stated that smartphone business is currently out of China. Even though LG Electronics posted excellent revenues for Q4 2017, the mobile division suffered a huge loss.
The overall growth of LG smartphones is sluggish. According to Industry analysts, people are not prepared to pay huge money when similar smartphones with the same specifications are available at a cheaper price with good after-sales service. The increase in components coupled with the delay in the adoption of trending technology is the main reason for the decline in the sales.
Rewinding back, Qiao Sheng Jin, CEO of LG Electronics had once revealed that smartphones will play a pivotal role in changing the lives of the people to a large extent. Moreover, it helps in establishing smart homes and connected devices.
The MWC 2018 is just a few days away and sources indicate that the company is planning to unveil LG V30+ instead of the LG G7. As in the case of other premium smartphones, you can expect the addition of a bezel-less full display, 8GB RAM alongside 128GB storage.
