Great news for LG Electronics Inc., South Korea’s number two smartphone manufacturer after Samsung, as analysts from Mirae Asset Securities Co. predict that LG will sell a record 15 million devices during the April-June period – second quarter 2014. What may surprise people is the fact that those sales are from mostly low-end devices, such as the LG G2 mini, as well as the ‘L’ and ‘F’ series. LG is targeting this ever-growing market niche – the emerging nations…such as China and India.
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The untapped potential in these countries is staggering when you look at their populations – India with over 1.2 billion people and China with almost 1.4 billion in population. Both countries were slow to get their long-term evolution (LTE) networks up and running and are prime candidates for smartphone sales. China own up and coming manufacturers, such as ZTE, Huawei, Lenovo, and Xiaomi to name a few, are growing fast as the race to sell cheap smartphones continues as demand keeps rising.
Last year LG shipped a record 12 million smartphones in the second quarter and if the analysts are correct, the company expects to sell 15 million during the same period this year. This will be the first time LG will sell 5 million devices during a month, beating out last year’s record of 4.4 million smartphones sold each month during the fourth quarter in 2013. The analysts say they see no slowing down for LG and sales should continue to the tune of 60 million smartphones selling during 2014. Although posting an operating loss in the fourth quarter 2013 of $42 million, LG’s mobile division looks to turn a profit this year.
LG’s newfound love by high-end users will certainly help profits this year as well – the G2 was a critical and commercial success while the LG G Flex was received with mixed reviews and limited distribution and was just recently released as an exclusive on Rogers in Canada. The LG Pro 2, which is basically a larger version of the LG G2, has received good reviews and there is much anticipation for the upcoming LG G3. The low-mid range models are needed for sales volume and profits, but the high-end models are responsible for the brand the recognition and reputation to sell those lower end devices. It is great to see LG finally seeing the fruits of their labor – the more competition, the better it is for the consumers.
Hit us up on our Google+ Page and let us know what you think about the new LG models and how they compare to the other flagship devices…as always, we would love to hear your opinions.