Following on from Nokia’s numbers, LG reports strong numbers. Both of these number(Nokia and LG) indicate that the market is evolving and the emphasis is shifting to higher value items(smartphones and services) which are leading to a differentiation between the players.
What do we think of this? I see differentiators prosper – the (plain) vanillas suffer ie if you cannot differentiate(in the minds of the customer) then you become a commodity. LG and Nokia demonstrate in different ways how they are doing well through differentiation
what do we think?
Things to note for me:
1) LG has shifted the emphasis to higher value devices and this has lead to higher profitability
“LG’s mobile phone division showed strong profit, especially in China and North America. Instead of selling more in terms of quantity, LG sold more expensive phones.”
3) “LG is targeting over 10% growth quarter-on-quarter by focusing on high tier, feature rich products.”
4) New phones like LG Smart that push the boundaries for phones
One to watch ..
