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LG Exits from Chinese Smartphone Market, Fierce Competition from Chinese Brands to Blame

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LG has seen a constant dip in it’s smartphone sales, selling only 13.9 million smartphones in the year 2017. Even though the manufacturer had managed to generate profit in 2017, they experienced damaging losses in the last quarter of the year. It must have been because of these factors that LG is quitting the Chinese smartphone market.

A company executive in LG’s office in Beijing was quoted saying, “LG mobile phone business has quit China.” We can relate the statement to the intense competition between Chinese and other brands in the Chinese markets, which usually results in Chinese smartphones attracting more customers due to their value for money. LG has been in losses for almost 4 years continously.

Chinese smartphones like Xiaomi, Coolpad, and Oppo have not only been able to make a bang in the Chinese market, but also have been able to capture the international market. Xiaomi has itself registered a huge growth rate in the recent years.

LG’s last smartphone launched in China was the LG G5 SE, launched in May 2016. We can gather from this fact that LG was actually planning to close down its smartphone sales in China. An LG official has informed that other consumer electronics businesses handled by LG in China will go on.

North America is still the largest smartphone market for LG, but their sales still have been falling. We can owe this mainly to the fact that International brands like Samsung and Huawei have been delivering tough competition to LG’s products. LG was also late to release its flagship last year, the LG V30 Plus. LG has also clarified earlier that they will skip the launch of G7 on MWC 2018 and will launch an upgraded model of LG V30.

Chinese smartphones are rapidly winning over Asian markets consequently, starting with Xiaomi beating Samsung and becoming the No.1 smartphone brand in India. Samsung has also been losing its much-needed offline market to Oppo and Vivo in India. By Xiaomi’s venture to the offline market, we can expect many more downfalls if Samsung fails to provide value for money phones for the Indian market.

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Obsessed with technology since a young age, Devdatt is an avid techie and an Android fan. He has a sweet tooth for Moto and Stock UI, and has used almost all Moto phones released yet. Moreover, Devdatt is the youngest member of Onphones. He simply loves sarcasm and dank memes. Gotta say, he’s the fun-maker in our team and keeps the situation lively.

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