Samsung overcomes crisis, LG remains in doldrums in 2017 smartphone industry

Samsung Electronics Co. successfully launched new smartphones throughout 2017 to overcome last year's crisis sparked by the suspended production of Galaxy Note 7, while LG Electronics Inc. failed to turn around its handset business, industry watchers said Wednesday.

In April, Samsung Electronics released the Galaxy S8 smartphone, which was its first premium device after the production of its phablet Note 7 was removed from the market due to safety issues surrounding the batteries.

Despite concerns that consumers may refrain from purchasing Samsung products due to the safety problems, the company sold around 5 million units of the Galaxy S8 around the globe in less than a month, indicating the company fully overcame last year's crisis.

Shipments of the new device over the first three months were 15 percent higher than the Galaxy S7 smartphones, industry data showed.

The Galaxy Note 8, which was released in September, was also popular among global consumers, with Samsung shipping 1 million units of the device in less than two months.

Key features of Samsung's new smartphones included voice-recognition system Bixby, which was aimed to compete with Apple Inc.'s Siri or Google Inc.'s Google Assistant. The devices also come with Infinity Display, which minimized bezels for a simpler design.

(Yonhap)

Compared to Samsung's performance, LG Electronics continued to struggle throughout this year, with its handset business posting operating losses for the 10th consecutive quarter as of the July-September period.

LG Electronics managed to seek a turnaround by releasing the G6 and V30 smartphones this year, but their sales numbers failed to meet the company's high expectations.

Experts said LG's sluggish sales apparently came as Samsung and Apple are leading the premium segment, while Chinese companies are also expanding presence in the budget market.

In November, LG Electronics tapped a new leader for its mobile communications arm, with Cho Jun-ho, who had led the struggling division for around three years, was relocated to an education arm of LG Group. (Yonhap)