LG, the South Korean electronics giant plans to launch "affordable" and fourth generation long-term evolution (LTE) smartphones this year. Long term evolution technology offers an amazing internet speed compared to 3rd generation technology.
Bharti Airtel, recently launched the 4G service in Bangalore. Additionally, IPhone 5S and 5C also provide 4G services; however, they are expensive. LG is now rigorously penetrating the 4G market by providing efficient and cost effective 4G services.
"Within the first half (of 2014), LG will bring three models of long-term evolution devices. LTE-enabled LG G2 with 32 GB inbuilt storage priced at Rs50, 000 will be first of the devices to be launched," he said. "The next launches will be more affordable. They will be little less expensive phones at between Rs20, 000 and Rs30, 000." LG India's managing director Soon Kwon told to ET.
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LG’s current market share in Smartphone category is under5%, which it wants to expand upto 10% by the end of this year. Hence, it plans to spend Rs500 crore in marketing activities. "We want our smartphone business to contribute about 20% of overall business by the end of 2014. As of now, it is only contributing 10%," Kwon said.
"A 2% reduction (in excise duty) may not be a big booster for foreign companies to invest (in manufacturing). It should be higher," Kwon said, referring to excise tax cut announced by the finance minister last month.
LG is expected to generate a revenue of Rs22, 000 crore in 2014. Smartphone’s would contribute around Rs4, 000 crore.
Surely, the LTE service providers can expect long term growthof the LTE technology and also be profitable. Similar conclusion is derived by analysts of Allied market research.
