V30 to vitalize LG’s sagging mobile unit

Sales of LG Electronics’ latest smartphone, the V30, are expected to top its predecessor, the V20, as the flagship device is drawing decent market responses for its organic light-emitting diode (OLED) high-end display and enhanced design, according to analysts.

LG expects the device to give new momentum to the firm’s ailing mobile unit, even if the V30 alone is insufficient to help the division post a noteworthy turnaround in a few quarters.

“An estimated sales figure for the device will be around 1.3 to 1.5 million this year, up from that of its predecessor’s 1.1 million last year,” Dongbu Securities analyst Kwon Sung-ryul said. “The V30 will not be able to become a game changer, but at least, the device is expected to energize the stagnant mobile unit.”

This is because LG has jumped on the global smartphone display bandwagon by equipping the device with its much-hyped six-inch, 18:9 ratio FullVision OLED display, according to the analyst.

“In particular, the V30 gave customers the perception that the company can manufacture quality smartphones despite its quarters-long deficit,” he said. “The device has also been praised by many customers for its improved design from its predecessor.”

LG unveiled the device at this year’s IFA tradeshow in Germany late last month. The smartphone will be available for sale on Sept. 21 here, with the device set to make its debut in other major overseas markets soon after. The V30 is priced at 949,300 won ($839.35) here for the 64 GB internal storage model. The 128 GB phone will sell for 998,800 won.

The V30 comes at a time when the premium smartphone industry is reaching saturation, due to the lack of innovations and intensifying rivalry with the rise of cost-effective Chinese vendors.

IHS analyst Ian Fogg said LG is on track to establishing its differentiated smartphone brand identity with the V30’s OLED panels.

“LG is able to take advantage of its display panel business to deliver a high quality, high dynamic range (HDR) and super wide aspect ratio OLED display on the V30,” the analyst said. “This is highly differentiated from Chinese brands which have struggled to secure OLED panels.” LG has a stable source of OLED panels from LG Display, while Chinese handset makers still adopt liquid crystal diode (LCD) displays that are not compatible with quality HDR video content, according to him.

The analyst said the key to the device’s sales success depends on its possibly wider availability in more countries than its predecessor.

“The V20 was not sold in Europe,” he said. “If the V30 has wider international availability, this will increase the volume modestly.”

But he also concurred that the V30 will not be powerful enough to help the mobile unit achieve a short-term rebound.

“The V30 is not sufficiently unique enough to turn around LG’s fortunes in the super-competitive smartphone market.”