Samsung, LG "bitter taste" … Why can not I give up my smartphone?

The performance of two companies' smartphones in 2Q is lethargic
Samsung fell sharply YoY, LG's loss in the 13th quarter
the pursuit of China …
"The AI will create a new growth engine by merging with autonomous vehicles "

[아시아경제 임온유 기자] Galaxy S9 and G7 have not been able to communicate. Samsung Electronics and LG Electronics both had a bitter taste in the global smartphone market in the second quarter. Of course, both companies have different positions in the market. However, it is clear that the two companies did not meet expectations as a result of the race of Chinese manufacturers and the slowdown of the smartphone market.

On the 6th, Samsung Electronics and LG Electronics announce provisional results at 2T. Although the results by division are not announced, the performances of the Samsung IM division and LG MC division, responsible for smartphones, are staggering. The second-quarter operating profit of Samsung IM is estimated at W2.3tr. Compared with the same period last year, reaching 3.7 trillion won and 4 trillion won respectively. The LG MC division is expected to record an operating loss of 130 billion won in 2Q.

The result of laziness of Galaxy S9 and G7 smartphones in the first half. The slowing growth of the smartphone market, especially in the high-end phone market, has also had an impact, but it's a growing Chinese manufacturer. In fact, experts say that it is virtually impossible for the smartphone industry in Korea to overtake China's armed war offensive of a rumor.

Professor Jeong Ok-hyun, professor of electronic engineering at Sogang University, said: "In the past, there has been a lot of research on the part of the Chinese government, In addition to the high lines high-priced, Chinese smartphones are likely to replace Korean smartphones. "A head of a domestic manufacturer who asked for anonymity also admitted:" It is no longer possible to 39, widen the gap between the manufacturers of the two countries. He also said: "It is already difficult to catch up with China in the field of mid-range to low-end smartphones."

However, the smartphone industry can not be abandoned.The smartphone market is likely to develop in the 5G era, just as 3G and 4G communication technologies have exploded in the mobile phone market, the 5G should give a new momentum. "By 2025, smartphones 5G will be marketed, "said Park Jin-suk, researcher at Counterpoint Research.

In the 5G era, smart phones can integrate with other industries in an organic way. For example, a 5G smartphone should be part of an autonomous vehicle.Smartphones facilitate autonomous navigation and play a role in the treatment of information by using secretaries of artificial intelligence (AI) It can also be used for diagnosis, monitoring and software upgrade of autonomous vehicles.

In the future, we expect the smart home, where home appliances are connected to the Internet (IoT), to become commonplace. This can serve as a hub. In addition, the smartphone should become a key device that mediates between augmented reality (AR) and virtual reality (VR). Park said: "If we view smartphones as 'personalized mobile devices' rather than just 'communication devices', the areas that can be developed in relation to other industries will be unlimited. It will be directly related to other industries such as automobiles. "

Of course, technological innovation for the smartphone itself should be done in parallel.In particular, there are many opinions that it is very important for a person to be concerned about the bubble market, which is considered the "next form factor." "Samsung and LG have superior display technologies to those of Chinese manufacturers," Jeong said. "We need to introduce innovative workbooks and guarantee quality and competitiveness prices by actively adopting cheap Chinese coins. "

Currently, Samsung Electronics and Huawei are competing for the launch of the world's first collapsible book.The market research company Strategy Analytics (SA) predicts that Pursuit-style phone sales will rise from 70,000 units in 2019 to 30.4 million units in 2021 and 50.1 million units in 2022. Mr. Park said: "Manufacturers Korean people still have the highest smartphone technology in the world and are leading the market, "he said. "There is no reason to abandon the market because of the Chinese pursuit."

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