April 24, 2024

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[THE INVESTOR] LG Electronics said on Sept. 20 that its latest high-end smartphone V20 would make its debut in the Korean market with a price tag of 899,800 won (US$803.50) next week.

As its compatriot rival Samsung Electronics has been struggling to solve the defective battery issue, it seems that there is no better chance than now for LG to increase its foothold in the top-tier handset sector.

Some market analysts, however, cast doubts over the success of LG’s new smartphone that will be launched on Sept. 29.

For one thing, the market condition is not very favorable to LG, whose mobile business has been suffering from continued losses in recent years due to the heated competition and flaccid demand in the smartphone market.

LG Electronics’ V20

“The V20 boasts more improved specifications than its preceding model and reflects the needs of consumers, but it is doubtful that the handset with improved hardware could turn things around for LG,” said Kim Yang-jae, an analyst from KTB Investment & Securities, citing the dog-eat-dog competition in the premium sector as a reason.

In contrast to market expectations, Apple’s new iPhone 7 and iPhone 7 Plus smartphones have been garnering popularity in global markets.

Samsung is trying to recover from the recent battery crisis by rolling out makeshift software updates for the defective Note 7 units and is running a recall program for consumers.

Some market watchers expect that the sales of the Note 7, featuring top-of-the-line specifications including an iris scanner, and a curved display, will improve to some extent when things settle down.

Despite the upcoming release of the V20 handset, shares of LG Electronics have been on a downward trend since Sept. 7, closing down 1.6 percent at 49,200 won on Sept. 20.

By Kim Young-won (wone0102@heraldcorp.com)