As its relationship with Verizon has unraveled, LG Electronics is seeking a new opportunity with T-Mobile USA in North America, according to a research note by Prudential.
LG is losing ground due to its lack of a smartphone line-up in the market. In the third quarter of this year, LG recorded a 29.7 percent market share in North America, a 2 percent drop from the previous quarter, whereas Samsung maintained its lead with a 25.6 percent share, according to the research firm Strategy Analytics.
Although the North American market is crucial to LG, its share in North America is decreasing due to Verizon�s slack, Prudential said. Furthermore LG was excluded from Verizon�s holiday promotion program this year.
Before recovering its position with Verizon through a competitive smartphone release, LG may make two kinds of new attempts, Prudential said. One would be to enter the prepaid market to increase its shipment of low-end mobile phones. The other would be to offer mobile phones through T-Mobile. To date, LG�s main contractors have been Verizon and AT&T.
Last month, T-Mobile officials reportedly visited LG�s headquarters in Seoul. Considering T-Mobile is aggressively marketing the Android-based smartphone, LG could also be a manufacturer for T-Mobile�s Android smartphone. LG has already introduced two kinds of Android-based smartphones, the GW620 and the GW880.
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