Sony and LG experience significant slowdown in handset market to force competition

Sony and LG lose their competitive edge in the fast-growing handset market as sales by both companies fell nearly a quarter in the fourth quarter.

At the end of the slowdown of Sony and LG in the phones division, the recent results of both companies have shown a sharp decline in sales of their smartphones.

In addition to LG 's second quarter report for the year 2019, smartphone sales fell 21% from the same quarter of last year.

The Japanese company has not suffered as much as its Korean counterpart: its sales rose by 30% in the last quarter compared to 2018.

LG's rationale for these disappointing results in the telephone division was behind the decline in sales of leading phones supporting 4G networks in general, as well as the dynamics of competition in the global handset market.

While Sony is known to have reduced its consolidation in the global telephony market since the beginning of the year, it has withdrawn from all markets, already affecting sales, which should 5 million units sold in 2019.

Impacts of lack of demand and momentum of competition

The smartphone market conditions have heavily clouded the two companies during the quarter, although they have launched high-end phones at a competitive price.

Sony has launched the Xperia 1 with an ideal cinema screen for watching videos and LG has also provided the market with the LG G8 with a supported version of the fifth generation technology.

But, compared to the models available on the market with specifications, price and quality were losers, especially with the strong presence of Chinese companies that have proven themselves with merit.

On the other hand, Sony has achieved a record number of sales of its PlayStation 4 unit, which has reached 100 million units sold during a relatively short period compared to its competitors.

Source

Sony, LG