LG officials said they have lost ground to the likes of Apple and Samsung, but hope that their new Optimus 3D will help turn things around.
LG Electronics
officials, who earlier this year boasted of an aggressive expansion of their
smartphone portfolio, are now reportedly cutting their smartphone sales
projections by 20 percent after losing business to such competitors as Apple
and Samsung.
Park Jong
Seok, head of LG's mobile business, told reporters at a media briefing July 7
that the company now expects to sell 24 million smartphones, down from the 30
million it had forecast earlier this year, according to a
Bloomberg News report.
The lowered
forecast is the latest hit taken by the mobile phone unit at LG, which is
currently the world's third-largest mobile phone maker. In the first quarter of
the year, the unit lost $94 million, marking the second consecutive losing
quarter. Park said the business is improving, though he was unclear when it
would begin turning a profit again, according to the Bloomberg report.
"It's
hard to give an exact timing, because there are so many market variables, and
the situation changes quickly," he said, according to the news
organization.
The South
Korean phone maker launched an aggressive campaign early this year, starting
with the 2011 Consumer Electronics Show in January, where it unveiled-among
other devices-
nine new phones, most of them running Google's
popular Android mobile operating system. At the time, LG officials said it was
crucial for the company to continue rolling out new devices to meet changing
demands.
"In an
ever-changing wireless industry, it is vital that we continue to listen to the
voice of our consumers and develop devices that meet their growing needs,"
Tim O'Brien, LG's vice president of marketing, said in a statement. "LG is
dedicated to providing users with products that embody the latest in innovation
and consumer benefits."
LG's lowered
estimates were announced at the same time the company unveiled its new Optimus
3D smartphone, a device officials hope will boost smartphone sales by 40
percent in the second half of the year. The device runs Android and is powered
by Texas Instruments mobile chips. It offers a 4.3-inch display, two cameras,
and pre-loaded 3D games. LG hopes to sell 1.7 million Optimus 3D units this
year,
according to Reuters.
LG officials
are hoping it will be a key part of a turnaround for the business as the year
goes on. Along with the reduced smartphone forecast, overall handset sales
projections also were lowered, from 150 million units to 114 million, due in
large part to the trend away from feature phones and more toward smartphones.
The company is also losing ground to rivals like Apple, with its iPhone, and
Samsung, with its Galaxy S device.
"Our
overall performance is gradually improving...but it's difficult to give a
precise prediction when our business will turn around due to a fast changing
external market environment," Park said, according to Reuters.
The LG
executive said the company would add to its lineup in the second half of 2011
with new devices that will include 4G LTE (Long-Term Evolution) phones and
smartphones with high-definition displays, Reuters reported.
LG currently
ranks third in the world in mobile phone sales. In a May 19 report, market
research firm Gartner had Nokia in the top spot in the first quarter, with 25.1
percent market share, followed by Samsung, with 16.1 percent and LG with 5.6
percent. Apple was fourth, with 3.9 percent.
LG's market
share had dropped from 7.6 percent from the same period last year.
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