LG is a company everyone in India relates to. There are numerous LG products in the market and there is at least one product which at everyone’s house which has LG’s logo on it. LG is a huge company with a lot of subsidiaries. It owns a lot of businesses and has almost a dozen other businesses. Their business range from Life Sciences to Vehicle components manufacturing. That tells us that LG has a lot of other businesses.
However, LG’s major revenue comes from LG electronics which has five major subparts; Mobile Communications, Home Appliances, Home Entertainment, Vehicle Component, and other uncategorized products. According to Martin from TechAltar, LG’s smartphone business contributes to about 5-9% of LG’s revenue. This might not be much but LG is one of the major tech companies which makes goo\d quality phones. Even then, they have a lost a lot of market share and have drained down in terms of ranks.
Their fall in the market is not a coincidence. LG has a lot of things to blame, the aggressive Chinese smartphone makers, their own experiments and its failed understanding of the market. That said, LG’s fall can be reasoned and argued but they still made some quality phones with ‘some’ being the keyword in that statement. LG tried their luck with curved displays, modular phones, flashy designs and what not. They eventually dug their own grave, however, by the start of this year, the company is looking to get back to their feet.
They have recently appointed a new president for their smartphone business and have narrowed down their focus to these technical aspects; Audio, Battery, Camera and Display, the company calls this the ABCD approach. Previously the company used to experiment with their designs, however, that will not be the case now. They will make good stock android phones with stable specifications and try and win the market back. They did the same with LG G7 and it worked, as the phone was everything the other phones in the markets are.
The smartphones nowadays are not that different from one another. They offer precisely the same specifications with similar designs in different companies, something similar to humans, the same organs in different bodies. LG have worked this in their own favor as they offered exactly what other major smartphone makers are offering. It worked and they are slowly and steadily getting to their goal.
Their plans are mostly to not enter into risky tech and use it in their phones. The only thing they are working on specifically is Artificial Intelligence and Software. They have a different software developing division now which was not the case previously. AI is although not that developed and doesn’t sound that promising but LG is constantly said to be working on it. Coming to software, they are offering better camera experience with better settings now. The software is definitely moving in the right direction.
All in all, LG Electronics’ smartphone business is moving in the right direction with the right frame of mind and perfect research. Only time will tell how LG performs in the upcoming smartphone storm of 2019.
– Unmesh Phule