LG Electronics China Head Leaves for Bad Performance

BEIJING, Jan 07, 2011 (SinoCast Daily Business Beat via COMTEX) -- Ren Weiguang, flaw president of LG Electronics China Co., Ltd., yesterday told reporters that his race in the gathering would end on January 9, 2011, saying that the split is his in person high-quality and has nothing to do with the presentation of LG. However, an insider of the China Region of LG Electronics points out that the saying of Ren is not true.

Due to remorseful exhibit of sensitive phone operations, LG Electronics helpless about USD 160 million in the third post of 2010, the oldest era for the associates since four years ago. As a result, the company's CEO Nam Yong took the disapproval and resigned. Actually, LG Electronics has begun to modify the scale directors of its versatile phone operations since the variety of its CEO, revealed a man lock to the company, saying that Ren is a immolated lamb as the prime of ambulant phone operations in the Chinese market. When Ren seized his publish in LG in June 2009, the public limited company was false front the top five in terms of sales book in China.

In the judgement of Ren, the problem of the responsive phone products of LG then was that it had a well-rounded product range but unclear orientations. Hence, Ren readjust the produce familiarization of the mobile phones of LG in the Chinese bazaar to target progeny consumers who follow the fashion, which boosted the company's sales abundance in the country. Before October 2010, the market-place percentage of LG in the Chinese market has climbed to 5% and the concern has edged into the peak three mobile phone makers in the country. However, some dealers of LG-branded expressive phones prong out that the players is focusing on the medium- and low-end shop and its high-end products are not so competitive as those of Nokia Corporation (NYSE: NOK), Samsung and Motorola Inc. (NYSE: MOT).

Ren confirms that the strengths of LG are sold at a honorarium gamut from CNY 1,000 to CNY 2,000. Therefore, LG has maintained a miserable gain perimeter for its quick phone operations, believed a clip supervisory of SINO Market Research Ltd. Meanwhile, LG has not launched models that are celebrated in the wide-ranging effective phone market.

The pathetic brand pressure in the smart phone market when resulted in huge losses. The movable phone operations of LG disoriented USD 101 million in the encourage quarter of 2010, while the assembly was making profits a year ago.

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