LG Denies Rumors Signed A Partnership Agreement With Huawei

LG Denies Rumors Signed A Partnership Agreement With Huawei

Local Korean media has circulated a few rumors that LG might be looking into a partnership with Chinese manufacturer Huawei. However, LG has denied the predictions or speculation that they are interested in joining Huawei in the smart phone business.

One of the officials had said, LG is considering various options for expanding its market and increase the sales volume of smart phones, including the search for a strategic business partner. But, it does not include a consideration forming a joint venture with Huawei. “There is no discussion right now or in the past with Huawei on every aspect of the business of LG Electronics,” said LG spokesman.

In the business of smart phone, the LG has a weakness in the lower middle market reach, and less strong in developing countries. While Huawei, aggressively market the phone in all segments of the market, and focus on developing countries, including China.

“As far as I know, LG is considering forming a joint venture with Huawei to revive the cell phone business. If that happens, then the LG smart phone business will increase and become much better,” said an analyst of Sanford C. Bernstein, Mark C. Newman to The Korea Times.

According to the research firm Strategy Analytics, LG is in the position of the four largest smart phone manufacturer in the world with a market share of 4.8 percent in the third quarter of 2013, while Huawei is ranked third with a market share of 5.1 percent.

In the business of smart phone, LG now rely on line Android smart phone, the LG G2 and LG Google Nexus 5. It’s been two years, LG is trusted by Google in producing smart phone Nexus 4 and 5.

The formation of a joint venture between two mobile vendors once made ​​by Sony and Ericsson a few years ago. Although it was successful, the joint venture company from Japan and Sweden finally disbanded in early 2012.

 

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