Countermeasures

The LG F70, LG’s low-priced LTE smartphone.
The LG F70, LG’s low-priced LTE smartphone.

 

It is expected that Samsung Electronics and LG Electronics will release an increasing number of derivative smartphone models in the latter half of this year.

In Korea, the Terminal Distribution Structure Improvement Act is scheduled to be implemented in October, which means that consumers will purchase new phones less frequently, causing domestic demand to decline. In overseas markets, the supply of mass-market smartphones is on the rise, as leading global manufacturers are scrambling for higher market shares in emerging countries.

According to industry sources, Samsung and LG are planning to release at least 10 derivative models combined by the end of this year. This strategy is contrary to that of Chinese manufacturers like Lenovo, Huawei, and Xiaomi, which are increasingly focusing on high-end handsets.

The change in domestic market conditions as of late can be attributed to the release of cheaper products in Korea, where the average smartphone specifications and prices have been high. Both of the companies have recently cut their products’ factory prices due to intensifying subsidy regulations.

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