LG Electronics Planning to Release G6 Earlier than Usual

Dec 25, 2016

LG Electronics is planning to release its next strategic Smartphone called ‘G6 (tentative)’ a month earlier than usual in order to increase its sales volume by releasing its Smartphone earlier than its competitors.
According to an industry on the 25th, LG Electronics is planning to release G6 at the end of February of early March. G5, which was the previous model of G6, was released on the 31st of March and G6 should be released at the end of March or early April if its release date goes by its previous model.
Timing of mass-production of G6 is also pushed ahead by a month. In order to start manufacturing G6 in February, LG Electronics told component manufacturers that it will be start asking for components in January. Actually LG Electronics is preparing to start producing G6 by starting recently to approve companies that will supply components to LG Electronics.
Reason why LG Electronics is pushing forward the release date of G6 is because it wants to increase sales volume of G6. G series is a product that is responsible for LG Electronics’ Smartphone business. Because its contribution to sales and operating profits are huge, its success or failure can equal to success or failure of LG Electronics’ Smartphone business of single year.
“Although G5 was introduced in February at MWC, it was initially scheduled to be released in April.” said a representative who knows situations of LG Electronics well. “It seems that LG Electronics has pushed forward the release date of G6 after believing that release dates of its products are late compared to its competitors’ products.”
It seems that early release date of G6 is interconnected with LG Electronics’ current situation. LG Electronics’ Smartphone business is making a loss for 6 quarters in a row and it is especially going through tough times this year due to poor results that G5 has brought to LG Electronics. Because LG Electronics in a situation where it has to improve and rebound from its poor performance as soon as possible, it has decided to push forward the release date of G6.
Industries are interested on whether or not early release date will help LG Electronics to grab upper hands in Smartphone markets. Although it is too early to determine, current situations do favor LG Electronics. There is a chance that Samsung Electronics will release its next strategic Smartphone later than models that were released this year since it is working to build up quality of its Smartphones due to discontinuation of Galaxy Note 7. Fact that iPhone 7, which was released in October, does not have huge changes compared to its previous model is also another positive factor for LG Electronics. Along with this, first quarter of 2017, when G6 is expected to be released, is when popularity of iPhone dies down a little bit. However it is crucial for LG Electronics to release G6 with high level of completion and competitive edge.
It is predicted that LG Electronics will pursue after ‘stable changes’ over bold innovations. It gave up on module-type design that was applied to G5 and is focusing on services and functions such as mobile payment service, wireless charging, and waterproof function that consumers prefer.
“Although we are preparing our next strategic Smartphone, we cannot disclose any detailed information about it.” said LG Electronics regarding possible early release date of G6.
Staff Reporter Yun, Keonil | benyun@etnews.com & Staff Reporter Lee, Jongjun | 1964winter@etnews.com

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