Global electronics giant LG Electronics has prepared a growth strategy of launching new devices to boost sales volume for mobile division from the fourth quarter onwards. With a short gap after launching G4, LG has already unveiled V10 smart phone.
The South Korean consumer electronics major is aiming for a larger chunk of market share as it's targeting low-end to mid-range to high-end devices in the mobile phone market. Offering more features in the smartphone range, LG Electronics is selling at lower prices than its competitors.
The South Korean major is also working on mobile payment service also.
LG Electronics has launched V10 smartphone and will begin commercial sales in the South Korean market from 8 October onwards. The new V10 smartphone comes with a small independent secondary screen in addition to 5.7-inch display.
It's equipped with two front cameras. V10 smartphone is priced at Korean won 799,700 ($679.6) in the domestic market. This is 11 percent less than its competitor Samsung Electronics' cheapest Galaxy Note5 launched in August.
LG Electronics is facing stiff competition from Chinese rivals Xaiomi, Lenovo and Huawei in the low-end to mid-range mobiles segment in addition to global majors Apple and Samsung in the high-end smartphone market.
Few months ago, LG launched G4 and just unveiled V10 smart phone. By launching new devices, LG is hoping to enhance its market share in the global smartphone business.
LG Electronics is in the process of developing mobile payment system and plans to launch the services shortly. However, the company denied providing any further info on mobile payment services.
LG Electronics witnessed flat sales performance during the second quarter. The consumer electronics major also suffered a decline in smartphone shipments. However, LG Electronics was able to improve sales performance in the North American market. Mobile sales in the US rose 36 percent on year-on-year basis as it registered robust demand for its mid-range smartphones and tablets.
The net profit for the second quarter dropped 45 percent to $195mn (South Korean won226) from $335.4mn in the previous corresponding quarter. The second quarter's profit drop was the weakest performance for LG since the fourth quarter of 2013.
The average forecast of 33 analysts participated in a survey by Thomson Reuters was pegged at $340.7mn for the second quarter profit. The total sales eased eight percent to $11.99bn for the quarter.
The recently launched G4 is expected to add to the earnings during the third quarter. The new smartphone G4 from LG has been equipped with new features including the high-end camera. It also comes with several leather back plates.
LG Electronics was launching a model every year but now has decided to unveil new devices on a continuous basis to push sales volume in different geographical markets.
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