LG may withdraw from China's mobile phone business next year

Electronic giant LG insiders recently revealed that due to LG's mobile phone sales in China has been sluggish, LG may launch the Chinese mobile phone market next year. At present, LG has stopped the release of new models of mobile phones.

IDC data shows that since 2009, LG's global market share has plummeted from 10% to the current 3.1%. Since October of this year, LG China mobile phone business has been precarious. According to reports, the company is abolishing the mobile affairs department on a large scale, in which the sales staff intends to cut 1,000 people. In August of this year, due to the low market share, LG Air-Conditioner has already withdrawn from the Chinese market first, becoming a Korean company that has withdrawn from the Chinese air-conditioning sector since Samsung.

According to industry insiders, the LG mobile phone business in China now has no funds, no channels, and no technology. Compared with a few years ago, the “Chocolate” mobile phone has become more and more popular, and now LG China mobile phone business can be described as very cold. Due to the company's mistakes in decision making, it was a good opportunity to lose ground in the smart phone in 2010. The company's products compete in the high-end market but Samsung Apple, and it hardly rivals Huawei in the low-end market. On the other hand, Samsung, the competitor, seized the opportunity of development of smart phones and became the second in the industry.

It is reported that since the first quarter of this year, LG has no new products, the company is stepping up its inventory. As the LG air conditioner withdraws from China has caused a large number of consumers to return home without repairs, the industry is concerned that the same situation will be repeated on LG mobile phones.

At present, the business of LG refrigerators and washing machines in China is equally unsatisfactory, with few sales categories and no price advantage.