LG is expected to launch an affordable 5G handset later this year. In their Q2 2020 earnings report, the company talked about strengthening its ODM strategy and released a device that can be available to a larger market.
The Q2 2020 financial report revealed that the South Korean tech giant has been noticeably affected by the Coronavirus pandemic. LG smartphone sales dropped by 19 percent year on year but grew 31 percent quarter on quarter after supply chains stabilized and lockdown measures eased, especially in markets like the US and Europe. The launch of the LG Velvet also helped bump sales during this period.
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According to an LG official, the company’s Mobile Communications division (smartphones) is working on improving the profitability of its business and become more competitive in the current market. This arrived after the official was asked regarding a possible release of a $100 or even $200 5G smartphone ahead of its competitors in markets like the US or China.
Furthermore, LG is already in talks with chipmakers and ODMs to bring 5G handset to the mass market and plans on being the first brand to do so. This would help boost 5G enabled devices since its price of entry is around a budget 4G phone. The company is also looking to launch an affordable 5G device in markets like South Korea and the US in the second half of 2020, although, an exact launch date is unknown.
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