LG may have re-earned a name for itself in the smartphone market courtesy the Nexus 4, 5 and 5X phones over the last couple of years, but the company’s bottom line is still not the best of shape. At a time when its core brand didn’t attract too many eyeballs in the market it successfully sold Google-branded Nexus phones in the same market. But overall its efforts to lure consumers towards its phones don’t appear to be paying off. If you differ, ask yourself that how many people have you seen carrying LG phones in the recent past?
In an uncertain market, it is normal to witness the rise and fall of companies. For instance, the once-popular Nokia (now part of Microsoft) and BlackBerry are now have beens. On the other hand, the erstwhile average performer - Samsung - has been widening its market space and sticking to the no.1 position for quite some time now. By and large, many would equate the performance of a company to the products on its carousel and the prices they are offered at, but unfortunately, LG seems to be failing to connect with consumers despite having the right boxes checked. Not only its products and pricing are in line with the competition’s offerings, it, time and again, has also proven why it’s ahead of both its rivals and also time. Pity, the same cannot be said about its sales.
When other companies had their entire focus on slimming down the phone’s thickness, LG took a little radical approach and did away with the physical buttons - power and volume - on the sides of the phone, integrated them into one and took them to the back, which went on to becoming the highlight of the LG G2 in 2013. This innovation was well received and some, such as Asus, also applied the same principle to some of their phones. Having keys on the rear is actually quite convenient given how most of us hold a phone.
But for LG innovations for 2013 didn’t end with the G2. The company surprised us with the introduction of its curved display smartphone - the G Flex. Though Samsung became the first company to introduce a smartphone with a curved display, but LG trumped Samsung in bringing a curved smartphone to the Indian market.
Among other interesting innovations made by LG is the KnockOn feature that allows users to wake up the screen with a double tap. It, however, can now be seen on a wide range of phones from other brands as well. The LG V10 with dual front cameras and dual display was another interesting addition to its portfolio last year.
And pushing the envelope even further, LG pleasantly surprised the tech fraternity by introducing its first modular smartphone - the G5, which could go on to set a new trend in the smartphone industry. Featuring a modular approach to design, the phone lets users pop out the phone's bottom and swap in new hardware features. Early options include a camera grip with physical buttons to take shots and control video recording.
Innovations made by LG, over the years, have not only testified that the research labs at LG Mobiles are working hard and churning interesting and innovative features. They also at the same time assert that the company is not afraid to take bold steps, even in face of weakening sales.
Other companies, such as Motorola, are also redefining expectations from a smartphone, such as by introducting of the world’s first shatterproof display. But LG has, in the recent years, been consistent with its innovations. This is further established with the G5, another proof of its prevision.
While companies like Samsung and Xiaomi may be among the biggest smartphone sellers in India, but the number of units sold isn’t a real indicator of a company’s courage to go beyond the obvious. These companies, however, can be credited for offering a true mix of hardware, software and price to consumers. And the sales figures are their best testimonials.
Even having demonstrated its innovative abilities over the years, LG is still lagging behind in the smartphone race. LG might need to think of another solution, beyond technical innovation, to be able to shrink this gap.
For starters, LG is looking to boost its marketing spend for the G5 which has been widely praised by industry experts for its creative design.
LG’s mobile division lost money last year on slower-than-expected sales of its flagship G4 smartphone but the G5, according to a report by Daishin Securities could sell 10 million units or more by year-end, which would be a record for an LG handset.
If this happens, then LG’s boldness would have erased its battered tag.