LG to hone low-end handset offerings in 2009
Other than creating more smartphones for 2009, apparently LG is also looking towards the low-end market for additional market share. LG CEO Jung Do-hyun himself said in a statement that the company will go with aggressive price points for its products in emerging markets.
Jung further adds, “We will settle for a single-digit profit margin in the low-end market by 2011,” and says that the company will expand outsourcing channels to help cut costs and maintain flexibility for the rapidly changing emerging markets.
Currently, the majority of LG handsets are either high-end smartphones, or luxury phones. Hopefully, they will start on a new campaign soon that will see the rise of lower-end but still highly functional handsets from them. As one insider points out, LG knows that they are “weaker than rivals in low-end portfolios in emerging markets.” But the company is “in transition and mulling over whether to go one-step further,” regarding this.