LG G5: Breakout Moment With G5 Smartphone

LG G5 Smartphone

After several years lost in the confusion of Android phone manufacturers, LG Electronics Inc. is leaving in the China market and is making a renewed effort in the US a high-end flagship smartphone, in an attempt to regain the No. 3 in the world market.

G5 LG smartphone, launched under the Mobile World Congress in Barcelona, ​​has won plaudits from the industry critical difference for design radically, reinforcing investors expects the South Korean company may have found its success phone.

LG needs a bestseller. Your mobile unit has registered losses during the last two quarters.The G5 metal structure has a modular design that allows users to easily exchange accessories as a package with an optical camerazoom, a reinforcement of high-fidelity audio or an extra battery. LG is planning simultaneous launches in the US, Europe and South Korea, 200 operators working with partners when the phone is for sale in April, said company executives. 
                                                                  LG G5
The cost of the phone has not been published yet.

"We want to give a great unity of this time, leaving aside more budget for marketing so you could probably afford," said Juno Cho, president of LG Mobile, without disclosing specific figures.Cho was named head of LG mobile end of 2014,mainly due to its experience in the US He spent four years as an executive involved in setting business strategies for LG's North American operations. 

 LG has a lot to catch up. Last year, he ranked sixth in the global smartphone market with a market share of 5.3%, behind market leader Samsung Electronics Co., Apple Inc. and a trio of smart-phone manufacturers Huawei Technologies Co. of China, Lenovo Group Ltd. and Xiaomi Corp., according to monitoring data TrendForce. Which ranks third worldwide in early 2013, but was finally ousted by Huawei. LG now sees an opportunity to challenge for Huawei No. 3 detect different devices.  

Analysts estimate that LG could send more than 10 million units this year G5; while modest compared with expected sales for Galaxy S7-some of Samsung Analysts estimate that approximately 40 million dollars for the Galaxy phone-that would be a record for LG. "Now that smartphones have fully penetrated the market, it is so hard to impress the consumer, and G5 can do that, "he said Jefferson Wang, senior partner at IBB based in Philadelphia Consulting Group. "They have hit the areas that are traditionally important for consumers: photos and music.

 " If the device is removed, LG could also benefit from sales accessories, which have margins of more juicy profits, analysts said. As a reflection of its ambitions, LG discarded his usual type of launch -a Place of the hotel conference room modest under Telephony Mobile World Congress in favor of a hall the size of the slope a hangar. In another break from its usual practice, the event took place just hours before Samsung, and live conference competition with Huawei. Committing to a larger marketing budget could make LG a key partner for American companies, who are looking for fresh products to boost excitement and usually pour in marketing dollars, along with phone manufacturers, said Jeff Fieldhack, research director based in California Rancho Santa Fe, by Contrapunto Technology Market Research. Spend a lot on advertising could help the market share grip LG fighting from phone manufacturers such as HTC Corp., Sony Corp. and Microsoft Corp., Mr. Fieldhack he added.

Cho LG recognizes that marketing can take a toll on the profitability of the company. But company executives say that with a potential hit smartphone in his hands, now it is the time for LG to be aggressive.Late last year, LG introduced the V10 in the US smartphone To play video features to trigger the device to consumers between 20 and 30 years, hired actor Joseph Gordon-Levitt to promote the phone. Thanks in part to these efforts, shipments of smartphones LG the US market It rose to 13% in the last three months of 2015, according to research firm Counterpoint. That marked a sharp increase for LG over the previous year. In spite of their progress, challenges still abound. 

The company has backtracked from China, the world's largest smartphone market amid stiff competition. LG sales China accounted for 6% of the company revenue, including sales of televisions and appliances, in the first three quarters of 2015. This compares with 28% for North America and 26% for South Korea during the same period.

"China is a very sensitive market brand, and requires huge retail costs in the early stages to push products, "Cho said. His focus in the US also it comes as other Chinese manufacturers like Huawei are watching the market.

LG is also pressing other segments such as telephone accessories, including a virtual reality headset light a 360 degree camera and a robot tread can serve as a real-time surveillance camera for home.


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