LG Axes Yearly New Phones, Switches To "As Needed" Basis

Joanna Estrada
January 12, 2018

"We will unveil new smartphones when it is needed". Speaking at CES 2018 this week, Cho Sung-jin, Vice Chairman at LG Electronics, outlined what that change would look like. LG might not adhere to a strict yearly release cycle, but that doesn't mean that we won't see a new flagship the LG G7 or LG V40 released this year.

Following several quarters of consecutive losses within its phone business, LG has announced it will no longer be releasing new smartphones every year, instead switching strategy to an "as needed" basis.

When asked about the reason behind this change in strategy, here's what he said: "We found it is important to retain a good platform for a long (time) and concerns rise over the supply of lithium materials".

The majority of earnings from LG's mobile phone unit are reportedly derived from its more affordable smartphones, than flagship models.

This move seems to be a way for LG to downsize its mobile business, which has been losing money for the last 10 quarters. Jo also said that there are plans for keeping high-end smartphones in vogue for longer by using different methods such as releasing more variants of said models.

A number of smartphone manufacturers struggle to make a profit, and LG's one of those companies.

Cho also talked about the firm's business plan for its robots powered by artificial intelligence and autonomous driving, which the firm has been revealing since it announced early a year ago that it would foster its robot business as a future growth engine.

Many technologies are needed for robots and LG can not do all that alone, he said. In the near future, it may even venture into robots and artificial intelligence.

Other reports by Click Lancashire

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