• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI

2

Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 

3

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises

1

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI

2

Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 

3

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
TechThe Mobile Executive

Where LG’s Cheap Phones Are Outpacing Apple and Samsung

By
Aaron Pressman
Aaron Pressman
Down Arrow Button Icon
By
Aaron Pressman
Aaron Pressman
Down Arrow Button Icon
August 10, 2016, 11:50 AM ET
Newest Innovations In Consumer Technology On Display At 2014 International CES
LAS VEGAS, NV - JANUARY 05: The LG Electronics LG G Flex phone is shown at a press event at the Mandalay Bay Convention Center for the 2014 International CES on January 5, 2014 in Las Vegas, Nevada. The company touts the unit as the world's first curved flexible smart phone featuring a 6-inch, curved P-OLED screen. CES, the world's largest annual consumer technology trade show, runs from January 7-10 and is expected to feature 3,200 exhibitors showing off their latest products and services to about 150,000 attendees. (Photo by Ethan Miller/Getty Images)Photo by Ethan Miller/Getty Images

While Apple and Samsung battle for smartphone market supremacy, Korean appliance maker LG Electronics has been quietly gaining ground.

LG, which makes phones running Google’s (GOOGL) Android operating system as well as dishwashers and air conditioners, climbed to third place in the U.S. smartphone market during the second quarter, according to Kantar Worldpanel. It grabbed 14% of sales—double its market share two years ago—and is trailing only Samsung at 35% and Apple at 32%.

But while LG started selling a new flagship phone, the G5, in April to compete head-to-head with Apple’s (AAPL) iPhone 6S and Samsung’s Galaxy S7, the real gains for the Korean manufacturer have been in lower-priced segments of the market.

Fortunately for LG, those segments have been growing faster than the rest of the market.

Subscriber growth has nearly stalled overall for regular monthly mobile phone customers—known in the industry as postpaid phone subscribers. But growth is accelerating among customers who have to pay in advance: the prepaid subscribers.

Get Data Sheet, Fortune’s technology newsletter.

The generally lower-priced prepaid market has grown between 10% and 12% for the past two years, according to data compiled by research firm MoffettNathanson. The more expensive postpaid market has grown only between 4% and 5% over the same period.

But only about one-third of the postpaid subscriber gains have been from phone users while the remaining two-thirds have been from subscribers buying tablets or other devices. Put it together, and postpaid phone subscriber growth hasn’t exceeded 2% in more than five years.

The slowdown in postpaid phone growth is more of a challenge for manufacturers focused on selling more expensive phones—especially Apple’s iPhone, which has suddenly seen two consecutive quarters of declining sales. Samsung has some mid-range phones that are appealing to prepaid subscribers, but LG has really taken advantage of the prepaid boom. The trend has also helped manufacturers purely targeting the low end, like BLU and Huawei.

While LG’s flagship G5 was its bestseller, LG’s cheaper model—such as the $80 Sunset and the $60 Leon—collectively sold in much greater volume, Kantar noted. The cheaper phones are sold by prepaid brands like MetroPCS, owned by T-Mobile (TMUS), Sprint’s (S) Boost Mobile, and America Movil’s TracFone.

LG was the top-selling brand at all three prepaid carriers, accounting for 40% of MetroPCS sales, 31% of Boost and 34% at TracFone, Kantar reported.

For more about the upcoming iPhone upgrade, watch:

Prepaid carriers sell other cheap phones, but LG has the best name recognition, says Lauren Guenveur, director of consumer insight at Kantar. “LG is available and featured across most prepaid carriers you walk into, and although brands like ZTE are similarly on display, there is name recognition in that LG makes other electronic goods,” she says.

LG received vast amounts of press and accolades when it unveiled the G5, sporting a variety of replaceable modules, at the Mobile World Congress in Barcelona earlier this year. Yet, cheap phones like the Sunset were ignored.

Maybe next year, the low-end should get a little more respect.

About the Author
By Aaron Pressman
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

murdochs
CommentaryMedia
OpenAI paid $100 million for a talk show. James Murdoch is eyeing an even bigger deal. The hot new asset class is humanity
By Lin CherryMay 17, 2026
6 hours ago
dennis
CommentaryAI agents
Freshworks CEO: why agile enterprises are winning the AI race — and what they did differently
By Dennis WoodsideMay 17, 2026
6 hours ago
A man with a headset sits at a desk in a call center.
EconomyAutomation
The AI boom hasn’t stopped U.S. companies from hiring cheap offshore labor, and overseas call center employment is still skyrocketing
By Sasha RogelbergMay 17, 2026
6 hours ago
Zillow CEO doubles down on remote-work model: ‘There is talent everywhere in this country’
Workplace Cultureremote work
Zillow CEO doubles down on remote-work model: ‘There is talent everywhere in this country’
By Marco Quiroz-GutierrezMay 17, 2026
6 hours ago
Stressed job seeker
SuccessGen Z
Gen Z is right about the job hunt—it really is worse than it was for millennials, with nearly 60% of fresh-faced grads frozen out of the workforce
By Emma BurleighMay 17, 2026
7 hours ago
A 45,000-person labor strike at Samsung’s memory chip plants could throw a wrench into the AI boom
EconomySamsung
A 45,000-person labor strike at Samsung’s memory chip plants could throw a wrench into the AI boom
By Catherina GioinoMay 17, 2026
9 hours ago

Most Popular

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
AI
Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
By Jake AngeloMay 16, 2026
1 day ago
Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 
Politics
Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 
By Jason MaMay 16, 2026
20 hours ago
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Politics
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
By Jake AngeloMay 12, 2026
5 days ago
SpaceX heads into a record-shattering IPO with the 'deepest moat that exists today' as investors vow to 'never bet against Elon'
Innovation
SpaceX heads into a record-shattering IPO with the 'deepest moat that exists today' as investors vow to 'never bet against Elon'
By Jason MaMay 16, 2026
1 day ago
Oil markets could be a month away from the moment of truth. Brace for a 'non-linear' price spike and panic buying, analysts warn
Energy
Oil markets could be a month away from the moment of truth. Brace for a 'non-linear' price spike and panic buying, analysts warn
By Jason MaMay 16, 2026
23 hours ago
Meet the 20-year-old CEO who launched a company in high school to solve Gen Z's entry-level job crisis
Future of Work
Meet the 20-year-old CEO who launched a company in high school to solve Gen Z's entry-level job crisis
By Jake AngeloMay 16, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.