LG re-enters smartphone field with a splash
LG Electronics Thailand Co, the local operating unit of the South Korean consumer electronics maker, has resumed smartphone sales amid intense competition after its handsets were absent from the market for two years.
For the first time ever, the purchase of an LG smartphone will come with a free TV set.
“We’re ready to return to the local smartphone market with a broad range of new product price points to cement our premium smartphone positioning,” said Nipon Wongsaengarunsri, marketing director of LG Electronics Thailand.
In the fourth quarter, LG plans to have four models spanning the mid-range to premium smartphone segments. Besides its flagship LG G6 that was officially launched in Thailand yesterday, the reappearance of LG smartphones here will focus on the 6,000-8,000 baht price range.
“We have been waiting for the right time where the price points fit every product,” Mr Nipon said.
Of the 16 million smartphone shipments in 2017, the premium market, priced above 15,000 baht, is the highest growth segment, with sales increasing 7% annually, compared with 2-3% for the overall smartphone market. Moreover, premium handsets accounted for 30% of total smartphone sales value and 11-12% in terms of total units sold.
“The growth of the premium segment has come because buyers in the replacement market demand devices with higher specification,” Mr Nipon said, adding that the replacement cycle is generally 12-18 months.
To capitalise on the premium smartphone segment, LG introduced its flagship LG G6, claiming it is the first premium smartphone featuring Dolby Vision technology and HDR 10.
“We are partnering with AIS to celebrate our LG G6 homecoming launch. The LG G6 is available at 20 AIS shops nationwide and through the AIS online store,” Mr Nipon said. “We will be arranging both online and offline marketing activities and have set a budget of 15 million baht for the first phase of our launch this year.”
To celebrate its homecoming, the LG G6 is available only at AIS shops and is priced at 24,990 baht. Under the sales promotion, customers who buy the phone will receive an LG 43-inch TV worth 13,900 baht free and
a 4,000 discount on an AIS data package. The campaign runs until the end of September.
“We are communicating to the market with our new lifestyle smartphone that serves consumers who prefer functions like video streaming, gaming and photographs,” Mr Nipon said.
By 2018, LG aims to generate 2 billion baht of revenue or 10% of total revenue from its smartphone business in Thailand.