Weekly LG Smartphone Recall Will Step Up Samsung’s World in Korea

Samsung’s market share expected to approach 80% Constraints on consumer choice and monopoly issues likely to emerge

With the news that LG Electronics is considering pulling out of the mobile business, there are many voices concerned that the domestic smartphone market will be reorganized into Samsung Electronics’ monopoly system.

According to the industry on the 23rd, LG Electronics’ share of the domestic smartphone market in the third quarter of last year was 9.6%.

Samsung Electronics ranked first unrivaled with a market share of 72.3%, while Apple only a market share of 8.9%.

Samsung Electronics ‘market share was exceptionally high because it was in the third quarter that a new Galaxy Note was launched and iPhone sales did not start, but Samsung Electronics’ share exceeded 60% annually.

Typically, Apple shares around 20% of the annual market share and LG Electronics shares 10% of the market share.

In the domestic market, where Samsung Electronics smartphones are already highly concentrated, if LG Electronics smartphones disappear from consumer choice, the domestic market will be reorganized to the level of Samsung Electronics monopoly.

LG Electronics sells mid-range to low-end phones instead of premium phones in the domestic market. Consumers who used low to mid-priced LG phones are more likely to switch to Samsung Electronics, which already has a familiar Android operating system (operating system), rather than the iPhone.

New major players are also highly unlikely.

This is because Chinese smartphones, which are doing well in the global market, such as Huawei, Xiaomi, Oppo and Vivo, do not earn trust in Korea and their brand competitiveness is weak.

Huawei, Oppo, Vivo and others do not sell smartphones in Korea, and Xiaomi constantly releases domestic smartphones, but the sales volume is minimal.

Assuming Samsung Electronics takes the majority of LG Electronics’ smartphone market share, its market share in the domestic market is expected to reach or exceed 80%.

In this case, the consumer’s point of view is limited to two options out of three.

Since Samsung Electronics sells smartphones in the global market and prices are disclosed by country, it is difficult to sell its very expensive flagship products in Korea alone.

However, the bargaining power of telecommunications companies is very low in terms of mobile phone supply and demand contracts with Samsung Electronics, and Samsung Electronics has no motivation to continue to subsidize prices or promotion.

If Samsung Electronics’ marketing expenses are not executed, consumers will have to buy more expensive phones.

There is nothing particularly good for Samsung Electronics.

If you take more than 80% of the share of the national smartphone market, the monopoly status becomes a problem.

When the problem of monopoly arises, some point out that the government should prepare the related regulations, and there may be more measures to create effective competition in the market, including the separate disclosure system currently promoted by the government.

An industry insider said: “I am concerned that the national telecommunications ecosystem will collapse if LG Electronics takes its hands off the smartphone. It is also regrettable that the national smartphone R&D ecosystem will decline.”

Prior to this, LG Electronics said on the 20th: “Regarding the mobile business, we believe that we have reached the point where we have to make the best decision by calmly judging the current and future competitiveness of the mobile business.” . “

/ yunhap news