LG shifts focus in China to its premium devicesLG Electronics is withdrawing its range of lower-priced smartphones in China as South Korea’s second-biggest phone maker tries to revive profit by focusing on premium models that run on fourth-generation networks.
LG, which last week started domestic sales of its latest high-end phablet, the G Pro 2, is in talks with three mobile operators in China to expand sales of premium devices, said Park Jong-seok, head of LG’s mobile communications division.
The mobile phone maker is boosting the number of its products that run on 4G networks to better compete with Huawei, Lenovo and other Chinese producers. LG wants to raise the profile of its high-end smartphone G series brand, including the 5.2-inch G2 and the 6-inch G Flex with a curved display, according to Park.
“We have the world’s best LTE technology and the China market is shifting toward LTE,” said Park. “We’ve been pulling out all cheap smartphones and decided to closely collaborate with mobile operators in the premium segment.”
Marketing costs led LG’s mobile division to a second straight loss in the fourth quarter, posting an operating loss of 43.4 billion won ($40 million) on sales of 3.59 trillion won.
The company also plans to increase the number of tablet products and develop a wristwatch smartphone this year, said Park.
LG maintained its fifth position in the global smartphone market in the fourth quarter with 4.6 percent of shipments