LG announces it will make a recovery and be profitable with new smartphones that will have wow part to woo consumers.
Loss after loss after loss. LG’s mobile phone business is in big trouble. LG was one of the top smartphone players back then and now today they have found themselves in the same boat as HTC and Sony. And if I were to blame someone for this then I would blame LG themselves because they’ve been lazy over the last few years. They are just launching phones just for the sake of it without focusing on things or features that other big companies like Samsung, Apple and Huawei are doing.
The camera is one of the areas that LG phones don’t even stand a chance today against the competition. LG’s mobile division is in the red for years now. In the last quarter, their sales dropped by 21% and they suffered a loss of 268 million dollars. LG, of course, was at CES and they said at the event that they understand that their mobile division isn’t performing well, but they said that they’ll make their mobile business profitable by 2021. LG will expand its mobile lineup and will steadily release new phones.
And they’re going to attract consumers with a wow factor. That’s interesting! They are saying they’ll turn their division profitable again by using a wow factor in future smartphones kinda like the dual screens on the LG G8X. Honestly, that’s easier said than done. One key point is that all phone technology is now much good. Innovation is incremental.
We rarely get that wow factor these days, And even if they were to suddenly surprise the world with a great phone with dramatically new features, it’s much less likely that they’d be able to innovate and produce excellent, exciting, new handsets consistently. And also LG simply lacks the marketing budget to make it a true success. They’re already losing billions of dollars in a year, so there’s no way they’re going to spend billions in marketing the way Samsung and Apple do.
The thing is, it’s not enough to just make a great phone, you need to market it properly and for that, they need the money and lots of it which LG can’t afford right now. Their new phone will look like this, it’s the first look of the LG G9 and the same old story here. It doesn’t have anything that really catches the attention of the media, and certainly I don’t see any wow factor associated with it.
Of course, they could do something with software but judging from the past, these software features are gimmicky at best and they don’t work well in real day to day life. So I hope the wow factor that they’re talking about isn’t associated with software. Anyway, I just don’t have big hopes for their comeback.
Their mobile division has failed to turn a profit or see any growth for several years – and it will likely be really tough for them to turn things around unless innovation makes a new leap or there is a shakeup in the industry. Also the introduction of high-speed 5G networks is incredible to help because the Chinese players are simply incredible to slow down, especially with their business with Qualcomm that can provide significant help in crossing the first difficulties of 5G.
In any case, I do hope that they turn things around and be profitable again but I don’t think they would be as big as they once were a few years ago. Let me know your thoughts on this? Is it possible for LG to be relevant again? do let me know down in the comments and as always, I’ll see you tomorrow…Peace out!