April 26, 2024

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[THE INVESTOR] Shares of LG Electronics declined 5.9 percent on Feb. 27 despite the much-anticipated unveiling of its new flagship smartphone G6 at the Mobile World Congress in Barcelona a day before.

The price closed at 59,000 won (US$52.25) on the benchmark KOSPI, down 5.9 percent or 3,700 won from the closing price on Feb. 24. 

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Analysts said tech stocks were hit hard by the strong Korean won against the US dollar because they trade key components in dollars.

On the day, Samsung Electronics and SK hynix declined 0.42 percent and 3.16 percent to close at 1,903,000 won and 46,000 won, respectively.

The Korean won closed at 1,129.20 won against the greenback, down 7.30 won or 0.64 percent from the previous session.

At the unveiling event, LG Electronics’ mobile chief and President Cho Juno pinned high hopes on the new phone for the money-losing smartphone business unit to turn around in the coming months.

“We will make new investments for marketing activities in April and May before the phone’s full-scale shipments start in the third quarter. We need to see the spending and device sales to gauge the turnaround. Sales will be a lot better than those for the G5 or the V20,” he said.

The G6 will hit the Korean market first on March 10. The retail price starts at 899,800 won.

With the G6, Cho said, the Korean tech giant has ditched the tech geeks of its predecessors, including the G5, the industry’s first modular smartphone that comes with accessory modules to upgrade camera and audio functions.

The phone boasts a sleeker design without any drastic change in hardware functions. The largest-ever 5.7-inch full screen covers almost all part of the front body, with a fingerprint-scanning home button on the back.

By Lee Ji-yoon (jylee@herladcorp.com)