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Home / News / LG to exit the Chinese smartphone market

LG to exit the Chinese smartphone market

Latest Govt. Jobs 14:41:00 News Edit
Image result for LG to exit the Chinese smartphone marketLG to leave the Chinese smartphone market amid heavy competition from the local brands. (Image of LG V30+ for representation)
LG is planning to exit the Chinese smartphone market, as the company has failed to turn around its struggling business. According to a report from the Chinese Business Daily,  the South Korean major cited increased competition from Oppo, Xiaomi, and Huawei for the reason of exiting the world’s biggest smartphone market.
LG was able to sell a mere 160,000 units in China in the entire 2016 out of an estimated 480 million shipments. This shows why the G6 and V30 haven’t been made available in China. The data from Strategy Analytics shows that LG’s market share in the Chinese smartphone market stands at 0.1 per cent. LG’s struggling smartphone business reported an operating loss of $192 million in Q4 and the company specifically quoted ‘strong competition from Chinese brands’ as one of the reasons for the loss.
Not just in China, LG’s grip in the handset business is losing out fast across key markets. In fact, the company is aware of the situation and which is why it is adopting a new strategy to keep the handset business in shape. Its CEO, Jo Seong-jin, had reportedly ordered its engineers to rework on the G7 hardware from scratch. LG says the next-generation flagship will arrive in the market only when “it is needed”. The company won’t launch the G7 flagship at the Mobile World Congress, which kicks off in Barcelona later this month. Instead,  the company plans to launch more variants in the G and V series in the coming months.
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