LG Denies Rumor of Exiting China Handset Market
China Business News, 12/20/12
A spokesperson for Korean consumer electronics firm LG Electronics responded on December 19 to recent rumors that the company will pull out of the China handset market. The spokesperson confirmed that LG was restructuring its mobile handset business, but denied that the company would leave the China market. Changes to the company's channel models and localization efforts for global flagship handsets have unavoidably resulted in personnel changes, the spokesperson said, but will not affect the future of LG's investment in China.
A source inside LG said that the company's 2013 strategy calls for a combination of "Core Clients + Online Sales Channels + Operator Channels." If all goes well, LG will begin releasing a series of five new handsets on the China market starting in February 2013.
Previous media reports noted that employees at 26 LG Electronics offices in China had been notified of layoffs, chiefly affecting management and sales positions at the company. LG Electronics has 12 plants in China at present, and employs more than 30,000 people.
Editor's Note: For more background on this topic, please see "Rumor: LG Electronics to Cut Staff in China" MD 12/04/12 issue.
Keywords: handset vendor handset wireless LG Electronics withdraw HR
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