LG denies rumors of withdrawing from smartphone market

Recently, there was information that LG Mobile will withdraw from the Vietnamese market due to its difficult business situation. LG has now officially responded to this issue.

Speaking to reporters, Mr. Kim Young Lak, General Director of LG Vietnam, said that the rumor that LG Mobile will withdraw from the Vietnamese market is incorrect, and the company will continue to commit to bringing new smartphone products to the Vietnamese market in the near future.

Regarding the mobile business (LG Mobile), at the end of the second quarter, LG sold 13.9 million smartphones globally, a slight increase of 3% compared to the previous quarter with sales reaching 2.86 billion USD. This shows that LG's smartphone business is still growing.

Regarding LG Mobile Vietnam, Mr. Kim Young Lak said that recently the company has been carrying out a restructuring process. In fact, this is also a common strategy with LG Mobile globally, when in early July the company implemented the Program Management Office (PMO) program to strongly improve its mobile management department.

In particular, the leader of the mobile phone division, Mr. Cho Juno, will oversee the overall operation of this department, while the direct operator will be Oh Hyung-hoon, implementing product development, production, marketing and sales strategies for LG in the international market with the support of the president of the mobile division, Ha Jeong-wook.

This move by LG is considered to be to further promote the image of its smartphone brand, while also catching up with its compatriot Samsung.

Mr. Kim Young Lak also confirmed that in the near future, LG's high-end smartphone lines, when launched, will soon be sold in the Vietnamese market, and the company will restructure its mobile distribution sector.

It is important to note that, except for LG's smartphone business which is facing many difficulties, LG's other product lines are still growing strongly. It is estimated that in the second quarter of 2016, LG's total revenue reached 12.05 billion USD. Of which, the division that brought the highest profit to LG was the Home Appliance & Air Solution business (washing machines, refrigerators, microwaves, air conditioners...) with a total revenue of 4.04 billion USD, an increase of nearly 5% compared to the same period last year.

LG's Home Entertainment division (4K TVs, OLED TVs, home entertainment devices...) also achieved a new record high in revenue, bringing in $3.58 billion, up 5.7% year-on-year.

According to Thanh Nien