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Virus preinstalled on a phone?

I just bought a new android phone and the AVG-antivirus app already found a threat (nothing installed on it but the AVG app). The threat was called SMSreg and it cannot remove the virus (apparently it's a harmful virus according to the AVG website). I looked at my apps list and apparently SMSreg is preinstalled into the system. Should it be considered as safe? How do I remove it?
 
Update: scanned with Lookout Mobile, Malwarebytes, and Avast. Nothing shows up but AVG still does. SMSreg is apart of the systems settings and I disabled it. I'm still not sure if this SMSreg thing is a virus, but I still want to get rid of it because I don't like the thought of having a potential virus to lurk in my phone. Is there a way to get rid of it?
 
Did you buy this device brand new out of the box or is it used?

If you bought it brand new I can say with 99.9999999% certainty that it didn't come with a virus lol
 
It was brand new, and it's (the supposed virus) apparently apart of the system settings (cause I can force stop it/disable it), but AVG says it's a virus... so I'm confused lol
 
You don't have a virus lol.....

Anti virus software for Android is basically useless and this pretty much proves it.
 
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