Samsung thinks LG will be the No.3 smartphone maker in the world next year
Well, this is interesting. It’s not every day that we get to find out how one player in the mobile world views one of its main competitors. But today we can do just that.
See, Samsung thinks that LG will become the third biggest smartphone maker in the world by the end of next year. There is one caveat here, though: the information comes from Samsung Securities, the brokerage arm of the Samsung group. So it’s not actually the people making Samsung smartphones who are behind this, keep that in mind.
That said, it’s fascinating to see how highly Samsung Securities analysts value their main competitor on the Korean market, LG. According to their newest report, LG will turn its smartphone business around starting in the first quarter of 2013. This comeback will be fueled by the upcoming Optimus G (and perhaps its rumored Nexus-branded variant), as well as a couple of successors that we haven’t heard about until now, codenamed V2 and GK.
Sales of the Optimus G in South Korea are likely to beat expectations, apparently, and the device will be launched internationally in November. Unlike previous models like the Optimus LTE which have done well in Korea but “fizzled” elsewhere, the Optimus G should be well sold across the world, thanks to “features and design that surpass precursors and rival models”.
In the first quarter of 2013, LG’s smartphone division will stop losing money, and should sell about 8-9 million units. Its global smartphone market share is projected to be at 5.8% at the end of next year, up from 4% in 2012.
LG will start making better quality products than its rivals (about time, we think), will expand the global distribution of its phones, and will manage to beat its main ‘second tier’ rivals in cost. Such rivals, that LG will have to sell more than in order to reach that coveted No.3 spot in the smartphone makers chart, include Nokia, RIM, and HTC.
Nokia and RIM are expected to “lose ground in OS competitiveness”, and LG should be able to beat HTC thanks to its superior supply chain and better global coverage (in terms of distribution).
LG’s shares are nothing less than Samsung Securities’ ‘top pick for 2013’, with a strong ‘Buy’ recommendation for its customers.