LG is about to change strategy with their mobile phone business and is to produce less expensive, low end mobile handsets. LG’s intention is to now sell half of its mobile products in emerging markets at an aggressive price band of $100.00 to $150.00, according to Jung Do-hyn, LG’s chief financial officer.
Jung Do-hyn has stated: “We will settle for a single-digit profit margin in the low-end market by 2011.” And that LG will expand outsourcing channels to reduce cost and keep up with flexibility for rapidly changing emerging markets.
LG sold twenty-three million mobile phones globally in the 3rd quarter which included the Secret and the Viewty. This U-turn is also to keep in line with the downturn of global economy stated analysts.
Source – koreatimes
