LG struggling with their mobile phone division
LG was once the fastest growing mobile phone company and looked to continue its domination. However, growing competition and lack of new products has resulted in slowing sales and loses for their mobile phone division. However, the company is working on bouncing back and has taken some steps in this direction.
LG expects that aggressive restructuring and an inventory write-off would help them return to profit this quarter. However, they still have to work hard considering competitors like Nokia, Motorola and Samsung have progressed a lot in the recent times. Motorola has made incredible progress with their Moto Razr phones and are releasing more and more exciting phones.
Motorola just launched a new mobile phone Moto Rokr in collaboration with Apple which comes preloaded with iTunes application letting users to download (from PC/MAC) songs and listen to them on the move. LG itself was a late entrant to this competitive market and dominates in the lower range mobile phones in the Asian countries. Samsung is the prime competitor in these markets and have grown pretty fast.
LG disappointed the market by selling just 12.09 million phones in the second quarter below its target of selling more than 13 million.