LG's mobile division does not lift its head, presenting a greater fall than the general one in the industry. He accuses Chinese companies like Xiami and Huawei of waging a dirty war with their prices.
We continue with quarterly statements from mobile companies, and although in general the mobile sector has suffered a general decline, Xiaomi and Huawei manage to increase sales, with the rest falling. However, LG's decline is much more notable, noting a nearly a quarter drop in year-on-year revenue in the April-June quarter.
Although the company has increased sales by 6.8%, the mobile division has suffered a loss of 268 million dollars in this quarter alone, a much higher than expected. A part of the losses are operational, since relocation to Vietnam It has had a significant cost, but they also have a scapegoat: Chinese mobiles.
Blame it on others who put very low prices
Although it has not named names, LG believes that the aggressive pricing policy of Chinese mobile phones is the main culprit for the low sales of mobile phones globally. They consider that the prices are too low and compete unfairly by making their mobiles see as too expensive for their customers.
It is obvious that he refers to Xiaomi and Huawei, which manage to offer mobile phones at popular prices for customers, but that is no reason to discredit them since their sector is different from LG. LG is considered part of the South Korean oligopoly, so it makes no sense to blame Chinese rivals.
Those of LG should once again offer innovative measures for their mobiles since it is known that they have a community of customers who love the brand and who are willing for the company to offer a mobile that is up to par, which sadly we do not see very certain in the short term unless an epiphany occurs.
Source WCCF Tech
