Lost in Mobile, LG focus to sales of washing machinesLost in Mobile, LG focus to sales of washing machines

Failed to compete in the mobile phone industry, LG Electronics shifted its business focus to the sector of household appliances. South Korean electronics companies have relied on the washing machine as a major source of income.

2015 becomes a difficult period for the mobile division of LG. Smartphone market share shrank from 4.7% (second quarter 2014) to just 3.8% for products from other brands behind some sort of Apple, Samsung and Xiaomi. As a result the profit figure slumped 45% during that period.

Several other companies also experienced the exact same thing due to sluggishness in consumer purchasing power, especially for mobile products. So I can still profit from earnings, companies such as Samsung Electronics Co. and Sony Corp. choose other sectors to be worked such as the manufacture of components such as the display of mobile devices and machine parts for other mobile phone brands. While LG chose to work the washing machine business competitors who tend to be minimal.

"Business TV and mobile phones tend to go up and down. While the tools of households still offer potential for improvement, "said Jo Seong-jin, head of the Division of Household LG in an interview with The Wall Street Journal. Inclusion LG from sales of household appliances (based on the rate of local currency) rose 13% throughout the year and operating profit increased by between 4.5% and 6%.

Stock analysts estimating the income of the household appliance business will contribute 80% of total operating profit in 2015. In the domestic division, there are about 20 categories of products and washing machines become the global market leader in its class. LG even still open opportunities variants addition of home-based products such as oven for cooking. The rapid advances in technology will also open up space for the company to develop an internet-based household products. "Later there will be a washing machine is equipped with special software to meet the wishes of users," said Jo added. But he also recognizes that innovation requires time and resources. For this type of washing machine twin-wash only, LG took eight years to develop involving about 150 engineers.