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 the time is right. But we won't just follow the crowd simply because other competitors are doing so." This statement signals a shift in LG’s approach to the smartphone market, emphasizing quality over quantity and strategic timing over constant product cycles.

With fierce competition driving many companies—including LG—to release flagship devices annually, LG's recent comments suggest a potential strategic reorientation. Rather than chasing every market trend, the company may be focusing on more deliberate and sustainable growth.

Last year, LG launched the G6 at the Mobile World Congress (MWC). Compared to its rivals, the G6 had a weaker processor and struggled in the market. This year, unlike Huawei or Samsung, LG has decided not to unveil its new flagship model—also called the G6—at MWC in Barcelona next month. Instead, it will wait several weeks, aiming to avoid being overshadowed by major competitors.

This move echoes Sony's strategy from three years ago, when the Japanese company scaled back its ambitions in the mobile sector. Although Sony's mobile division later faced challenges and never fully recovered its market position, the decision allowed the company to focus on more profitable areas of its business.

LG's current path appears to be a similar attempt to refocus and streamline its operations. By reducing the pressure of annual releases and prioritizing quality over frequency, the company may be laying the groundwork for a more stable future in the highly competitive smartphone industry.