LG Quits the Chinese Smartphone Market, Blames Tough Competition From Local Brands
LG’s 2017 financial results revealed the company had sold only 13.9 million smartphones in 2017. It’s mobile division generated USD10.52 billion in sales in 2017, but the company experienced losses in the last quarters. Now, the latest news from China confirmed the exit of LG from the Chinese smartphone market. While there are no LG smartphones launched in China in 2017, it is now said to be officially confirmed the company.
The company’s representative at its Beijing office is quoted saying, “LG mobile phone business has quit China.” Except for the small profit in 1Q17, the company’s mobile division has been in losses for the last 11 straight quarters. Even the intense competition from the local players and the Chinese smartphone market reaching the saturation point might also be reasons for the company leaving the largest smartphone market.
The last smartphone added to the LG’s Chinese website is the LG G5 SE launched in May 2016. Except for smartphones, the LG’s consumer electronics business in China will continue as usual. While North America is the largest smartphone market for LG, it has been facing intense competition from Apple and Samsung. While LG remained stagnant in Europe, Huawei has grown to become one of the leading smartphone brands.
In most of the Asian markets, the Chinese manufacturers are dominating the other leading manufacturers with better products and competitive pricing. On the other hand, the company is also said to skip launching the flagship LG G7 smartphone at this year’s MWC. Instead, the company will be launching the upgraded LG V30+ smartphone. With the LG V30, the company finally launched a good flagship device that is on par with the competition.