How LG Smartphone collapsed - Product part 2

Let me continue to post product part 2 for the reason of sluggishness of LG smartphone. If we take a look at the recent LG product line-up,

(Source: https://www.gsmarena.com/lg-phones-20.php)

I assert, even within LG, there will be no single employee who memorizes all LG product names. However, there might be an excuse for the line-up to be so complicated and messed up.

Mobile business consists of 3 elements; 'Manufacturers (Apple, Samsung, LG) - Operators (Verizon, AT & T) – Consumers’. Before a product launch, manufacturers are required to introduce products to operators and take steps to accommodate their requirements.

Operators primarily provide feedback on specifications, designs, prices, and additional marketing requirements. Depending on how well these requirements are met, it is determined whether or not the product can be sold through the operators. (In the industry, this is called ‘Lock-in’).

There are not many requirements for Apple and Samsung, since they are sold well anyway because of proven brand power and product quality. However, LG's situation is quite different. Because LG doesn’t sell any product well, operators want to put it in their desired price slot. So, there is a demand for a specification and a product name suited to the slot.

Operators want to change at least the product name if the previous product is failed. For example, if LG G6 falls, they don’t want to go with LG G7 for the next.

Assuming this situation, LG's line-up and product names seem to have been messed up with successive failures. The premium G-series is ruined and the middle and low-priced K and X series are ruined too.

(Source: www.engadget.com, There was a line-up philosophy in LG)

In the end, the appearance of a hero product is essential to deal with this situation. For example, Apple goes with products name iPhone, iPhone Plus, and iPhone S, and Samsung's line-up is centered around the S and Note series.

Since LG’s G and V series, which had been aiming for hero products, were not successful, they are likely to come up with different product names.

The next product could be G7, but in this case: 1) there is no marketing cost to make a new branding; 2) the next product is not a wow product; or 3) the marketing team’s sabotage.

[What are the requirements for the hero product?]

The first element for becoming a hero is obviously a 'specification(spec)'. It should be acknowledged that LG has tried to lead the spec with innovative technologies, LG released curved design with 'G Flex', 'Optimus 3D' showed technology that can be seen without 3D glasses, and 'G5' also introduced modular type transformer phone.

The problem is that such technologies are innovations that consumers don’t want. LG's hero phone bought only "novelty" but it should be "novelty + practical" innovations. From the G6, it seems that the strategy has been revised as an 'all-round' phone with 'basic' specifications.

The 'all-round' phone is a product with a ‘basic’ specification that consumers want. If we look at the specs that we wanted so far, we could say that it was the latest CPU > metal design > waterproof > fingerprint > pay > wireless charge > iris recognition.

However, LG has never satisfied consumers in a timely manner. G2, G3, G4, G5 never equipped with the latest CPU, metal design, waterproof, fingerprint recognition, pay and wireless charging not to mention that the iris recognition is not even in the G6 spec. If you don't have these basic specifications, you can’t be a hero or an 'all-round' phone.

LG's new product should be equipped with the basic specification. At this moment, 'Galaxy S9' introduced 'AR Emoji' and 'Super slow motion video recording', can you make it LG?

(Source: www.phonearena.com)

[More important than the spec, quality]

There are so many other things besides the spec. Design, price competitiveness, marketing and so on. But the most important thing is quality. 1,000 dollar phone is not a kidding.

In fact, LG has to admit that their quality didn’t meet the expectation at all especially with G4 and G5. The only hope is that there is no big issue in G6. Finally, I hope LG has to keep in mind the words of the founding president.