The LG Velvet 5G launched earlier this year is one of the best mid-range 5G smartphones in the market. During the earnings call, the LG mentioned it will launch an affordable 5G phone by the end of this year.
With the upcoming mass-market 5G smartphones, LG is trying to get the early mover advantage in the markets like the US and South Korea. The company is also working closely with chipset makers for offering best-in-class experience even on the affordable devices.
Affordable LG phone with 5G support in the works
While the LG Velvet 5G is powered by the Qualcomm Snapdragon 765G 5G Mobile Platform, LG recently launched the Velvet 4G with the two-year-old Snapdragon 845 Mobile Platform. Based on the rumors, the company is also working on a new Velvet smartphone featuring the latest Snapdragon 690 5G Mobile Platform.
Moreover, the trademarked names from LG also hint it might soon launch a 5G smartphone under the Q-series. The LG Q92 5G and Q9 2020 5G could be the first affordable 5G smartphones from LG. LG also acknowledges that 5G iPhones will rapidly increase 5G adoption. This might also work in the company's favor as it's been preparing for 5G smartphones for a while.
However, LG is yet to reveal any timeline for the launch of these new Q-series smartphone. Even the Snapdragon 765G-powered LG Velvet is only available in the US, Korea, and a few European markets. The company might soon launch it in other key markets with 5G infrastructure.
LG's smartphone business has reported solid growth in Q2 2020
Talking about its smartphone business, the sales in Q2 2020 have seen a 31.1 percent quarter-on-quarter growth. However, it is still running at a loss. While the mobile division recorded KRW 1.3 trillion in sales, the operating loss is at KRW 206.5 billion.
LG is also restructuring its mobile division to be more competitive and improve profitability. It is also expanding the ODM business to help reach its goal. Hopefully, LG could turn its smartphone business profitable if it continues to register similar growth in the coming quarters.
The new LG Velvet smartphones will undoubtedly play a significant role in this turnaround. With flagship smartphones crossing $1000 mark, the company is targetting the sub $600 smartphone market with the LG Velvet 5G. The carrier subsidies will further decrease the upfront cost while buying a new 5G smartphone.
While LG considers North America and Korea as its key markets, it will be expanding sales capabilities in LATAM, Europe, and a few other countries.