Cheil Industries doubles IPO price on market debut

LG G3 off to a good start

Latest smartphone sells over 250,000 units in Korea

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Published : 2014-06-23 20:47
Updated : 2014-06-23 21:45

LG Electronics’ new marquee smartphone, the G3, is expected to be well received in the global market as it got off to a solid start on its home turf, according to industry watchers.

The phone sold over 250,000 units in 25 days since it launched in May in the domestic market ― the pace is two times faster than its predecessor the G2, mobile carriers said.

The LG G3 also topped the list in an online survey of 3,000 consumers done by local phone review website Cetizen last week. The G3 took the first spot with 72 percent, followed by Galaxy S5 with 16.5 percent and Vega Iron with 11 percent. 
LG Electronics’ G3 smartphone (Android Beat)

“The G3’s success in the local market was in concert with the end of telecoms’ business suspension and the sluggish sales of the Galaxy S5 apart from its good features. This will pave the way for success in global markets,” said Lee Seung-woo, an analyst at IBK Securities.

The G3, which is expected to be launched in the global market starting this week, has good reviews from tech media and blogs outside South Korea. In a survey conducted by GSM Arena earlier this month, users picked the latest LG model over rival firms’ flagship smartphones. American media CNET also said “The G3 would be a game changer,” adding it may gain more traction than the Galaxy S5.

Park Jong-seok, chief executive of LG’s mobile business, said at the launch in May that the company planned to sell over 10 million units of the G3. Industry watchers said it would not be difficult to reach the target. Shinhan Investment predicted that sales of the G3 would hit 13 million units in the global market, which is double the sales of the G2.

LG Electronics got off to a slow start in the smartphone business compared to its rival Samsung Electronics, and it took longer to cultivate a reputation. Reflecting the trials and errors, the company’s mobile business recently suffered three consecutive quarterly losses.

However, the late bloomer can expect to see things change for the positive down the road, industry watchers said. Analysts said the company would see a turnaround in the second quarter due to the solid performance of its low-end L-series smartphones, and continue to see a gain in the third quarter thanks to the expected strong sales of the G3.

The positive outlook is also expected to raise the company’s shares. Woori Investment & Securities raised LG Electronics’ target price to 95,000 won ($93) from 85,000 won recently on the basis that the market share of the G3 will increase in the Americas.

By Shin Ji-hye (shinjh@heraldcorp.com)

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