updated 08:45 am EDT, Thu July 7, 2011
LG phone targets for 2011 drop by steep 36m
LG at a media briefing drastically lowered its cellphone targets as its smartphone sales failed to break through. Its overall target for cellphones in 2011 was dropping 24 percent from 150 million down to just 114 million. Smartphone aims were also going down even as they became more important, dropping a fifth from 30 million to 24 million.
The company had sold 50 million phones in the first half of the year, 10 million of which were smartphones. When it reports results this month, LG is expected to post its fifth quarterly loss in a row with the losses blamed mostly on its slumping phone business.
LG has often been considered second to Samsung and has had a brand reputation to overcome. Many, however, have pointed to its overreliance on Microsoft early on as a liability. The company eagerly made a Windows Mobile deal in 2008 just as Android was getting started and ended up sharing in Microsoft's collapse in phone share just as Samsung, and early Android adopters like HTC, were on the rise.
The company has tried to turn around its smartphone presence aggressively in 2011 by focusing on high-end Android phones, including the Optimus 2X and G2X as well as the Optimus Black. It just recently began shipping the Optimus 3D, which is not just its fastest phone but one of just two phones in the world market with glasses-free 3D.
The share drop is likely to play into the hands of not just Samsung but Apple, which already ships more smartphones than LG and might come closer to its overall cellphone targets as well.