LG Electronics Inc. plans to bring major changes to its smartphone business, with potential options including scrapping the premium G and V series, industry watchers said Sunday, as the business continues to remain in doldrums in the face of Chinese rivals.

"It is true that there has been a feeling of doubt over the smartphone business due to the sluggish performances over the past few years," an official from LG Electronics said, claiming it is doing its best to survive in its competition with Samsung Electronics Co., Apple Inc., and other Chinese firms.

LG's mobile business is presumed to have posted quarterly losses of around 200 billion won ($187 million) for the fourth quarter. The company posted an operating loss for the mobile division for the 10th consecutive quarter as of the July-September period.

"We are making various considerations on the brand name and the release date regarding the upcoming smartphone, the G7," the official said.

LG Electronics Jo Seong-jin also recently claimed that the company may adopt new brands to replace the existing G and V smartphones. 

According to the data compiled by industry tracker Counterpoint Research, Apple took up 59.8 percent of the world's smartphone operating profits in the third quarter of 2017, followed by by Samsung with 25.9 percent. Other Chinese brands followed, with Huawei, Oppo, and Vivo posting a share of 4.9 percent, 4 percent, and 3.1 percent, respectively.

"It is problematic that LG has a clear strategy, of trying to distinguish itself through premium models, or with price-competitive budget models," said Lee Byung-tae, a professor of business at Korea Advanced Institute of Science and Technology.

"Although it will be complicated to come up with innovative designs or technologies immediately, the company needs to have an aggressive idea in terms of marketing and price." (Yonhap)