Yesterday (September 5), “Daily News” reporter learned from China’s internal LG, LG Electronics China R & D center will be the mobile phone R & D department a wide range of adjustment. LG Electronics, an unnamed employee told the “Daily News” reporter, Lg laptop battery officially announced on Friday will be the message that this adjustment, the mobile phone R & D department of 150 employees or less, leaving only 10 Yantai plant into production, R & D center in Beijing, the original mobile phone R & D department will be canceled.
Subsequently, the “Daily News” reporter from the Lg laptop batteryofficial confirmed the strategic adjustment of response messages. As for the number of people involved, LG side said that the current number of people are doing related internal statistics, being inconvenient disclosed. LG side said that the adjustment is from the perspective of the organization’s operational efficiency to reconfigure the hope that through these measures, the outgoing staff to a minimum.
Beijing mobile phone R & D departments will be merged
According to the LG internal staff said on Friday that about 10 of my colleagues have received the contract expired the company’s labor department “not to renew the” e-mail notification. And just after the R & D department up to two months did not project to do.
The LG staff said that although not yet received a formal notice, but the internal has been rumored to be leaving Beijing mobile phone R & D less than 10 individuals, key personnel for the planning department and individual executives, who will be transferred to Yantai R & D center, while the rest of the staff or included in the scope of layoffs. Reported, LG’s given the compensation package for the “N +1″.
In response to these messages, Lg laptop battery side to the “Daily News” said in a written reply, “In the past, LG mobile phone R & D departments in Beijing, the production facility in Shandong (Yantai, Qingdao) recently, the company expects a mobile phone production and R & D into a single organization, with two departments in order to improve efficiency and work. ”
LG side pointed out that the program is implemented, the current Beijing mobile phone R & D department may be merged into the Yantai plant. For mobile phone R & D team is currently a member of Beijing, Yantai, if I asked to be transferred or Korean factory headquarters, LG will try to arrange according to circumstances, if you want to stay in Beijing R & D Center, LG will try to arrange to Beijing LCD TV R & D department.
“Localization policy” adjustments?
LG Electronics in China has been stressing its “localization policy”, as the localization of LG in China, an important component of its Beijing research and development center phone merger, the industry believes that the weak sales of mobile phones is under the strategy of localization adjustment.
LG Electronics’ strategy of localization is quite pragmatic, the company has 20 years in Qingdao, Yantai, Huizhou, establish a total of 13 production bases in China set up a number of R & D center and design center, the incident Beijing mobile phone R & D Center is one of them.
However, over the years, Lg laptop battery Electronics on the management of the business in China, the industry has repeatedly been criticized as “paternalistic,” The reason is that planning, development, marketing and other aspects of the important decision-making power is always in control in the hands of LG Korea headquarters. Industry insiders believe that, as far from the headquarters of the Chinese market, its decision-making process is slow, and the big gap between the status quo with the market, resulting in LG Electronics’ business in China clunker.
As the world’s third-largest mobile phone maker, LG Electronics has been dominated by about 10% of the global handset market share. But Dixon pass Qi Feng, senior vice president, said in relation to the global market share of LG mobile phone, China market has been its “weakness.”
Data show that as of October 2010, LG mobile phone market share in China up to 5%, but according to Di ICT statistics, this share has now dropped to less than 1%.
Weak high-end products
“Although LG mobile phone sales has improved, but mainly concentrated in the low-end market, which result in lower profit margins Lg laptop battery mobile phone the other hand, the hot-selling consumer product failure rates have also been criticized.” Qi Feng pointed out that LG sales price of the main terminal models generally 1000-2000 yuan, high-end product line of weakness, is the LG mobile phone market in China, the weak link.
In addition, the “Daily News” reporter noted, LG layout in the global smart phone market has stagnated, LG has a lack of selling high-end smart models. The heavy launch LGoptimus was Samsung (microblogging) Galaxy and the Apple iPhone attacks. As of the end of August 2011, LG mobile phones hit the fifth consecutive quarterly loss. Lg laptop battery reported a second quarter of this year, LG Electronics mobile phone business has been loss of 120 billion won last year dropped to 53.9 billion won.
To this end, the beginning of July, LG Electronics, smart phone sales in 2011 reduced the target to 24 million, have dropped to 20%; LG Electronics mobile phone while its full-year goals lowered a quarter of the total shipments to 114 million.