On the 5th, LG phones are on display at an electronics store in Seoul. News 1
As LG Electronics officially withdraws from the smartphone business on the 5th, it is expected that there will be no small impact on the domestic market. Right now, it is clear that consumers’ choices will diminish as the monopoly between Samsung Electronics and Apple intensifies. Accordingly, there is growing concern about product price hikes and poor after-sales service (AS) by manufacturers.
“Most LG phone users are likely to move to Samsung Galaxy”
In the industry, most of LG Electronics’ smartphone users are putting weight on the possibility of moving to Samsung Electronics’ Galaxy in terms of operating system (OS) and price. The OS is the same as Android, and a large number of LG phone users are using mid-priced products under 400,000 won.
The reorganization of the domestic smartphone market is also expected to be inevitable. According to counterpoint research, a market research firm, Samsung Electronics (65%) took the first place in the domestic smartphone market share last year, followed by Apple (20%) and LG Electronics (13%). Of these, if LG Electronics withdraws, it is predicted that Samsung Electronics will take 70-80% and Apple will take 20-30%.
It is negative from the point of view of the consumer. This is because the right to choose a variety of products is inevitably reduced. The bargaining power of mobile carriers, which negotiates with manufacturers and sets subsidies to be paid to consumers, is also likely to decline. In the case of mid- to low-end smartphones, the need to spend marketing expenses is reduced from the position of Samsung Electronics, which will become a monopoly. This is the background that is fueled by the prospect that consumers’ burden of purchasing smartphones will increase.
LG Electronics “For the time being, post support will continue”
With regard to AS, another concern of consumers, LG Electronics said it plans to support product repairs and software updates for the time being. Smartphone AS can be obtained from LG Electronics’ home appliance integrated service center including TVs and refrigerators in the future. An official from LG Electronics said, “We will produce mobile phones by the end of May so that we can supply the products promised to customers such as telecommunications companies.” said. However, as there is no sequel, the price of LG Electronics’ stock products and used phones is expected to drop significantly.
Samsung, Apple, and Xiaomi compete to fill the void in LG Electronics
The competition among manufacturers to occupy the void of LG Electronics is also expected to be fierce. For the first time, Samsung Electronics decided to add LG Electronics smartphones to the used phone reward program. Until now, Samsung Electronics has provided benefits to compensate for a certain cost when returning products only to its own products and Apple iPhones.
Apple is also looking to expand its market share by reinforcing AS, which has been evaluated as a weakness compared to domestic manufacturers. Apple opened its second store in Yeouido in February, three years after opening its first store in Garosu-gil, Seoul in 2018. Apple Korea decided to discount iPhone repair and insurance product costs by 10% over the next year.
Xiaomi, who once tasted bitter in the Korean market, is also aiming for LG Electronics’ vacancy. Xiaomi held a press conference on the 23rd of last month to announce the release of the’Hongmi Note 10′ series in Korea. This product is a low-cost product in the range of 200,000 to 300,000 won, targeting the demand for mid- to low-priced phones that emphasize’cost performance’All. However, as domestic consumers’ trust in Chinese smartphones is not high, it is questionable whether it will achieve meaningful results in the market.
Inner sky reporter [email protected]
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