CES2018: In order to reduce losses, LG will reduce the scale of mobile phone business

During the CES press conference, LG Electronics CEO Zhao Chengjin stated: "We will launch new smartphones when necessary. But we won’t follow competitors just for the sake of it." This statement signals a shift in strategy, as the company aims to be more selective about its product releases.

The smartphone market is highly competitive, with major players like Samsung and Huawei launching new flagship models annually. In response, LG is rethinking its approach, focusing on quality over quantity. This marks a significant strategic shift for the company, which has long been known for its frequent product cycles.

LG's G6 was released at last year's Mobile World Congress (MWC). Compared to its rivals, the device had a weaker processor and underperformed in sales. This year, unlike Huawei or Samsung, LG has decided not to unveil the G6 at MWC in Barcelona next month. Instead, it will wait a few weeks to avoid being overshadowed by other major announcements.

LG's decision to step back from the annual release cycle mirrors Sony’s move three years ago. At that time, Sony also scaled back its ambitions in the smartphone sector, leading to a decline in market presence. Although Sony’s mobile division faced challenges afterward, it never fully recovered its former position.

With the smartphone market becoming increasingly saturated, LG's cautious approach could help it focus on innovation and long-term growth rather than short-term competition. Whether this strategy will lead to a revival remains to be seen, but it certainly shows a willingness to adapt in a rapidly changing industry.