LG Electronics shifts focus from smartphones to TV

Discussion in 'Android News' started by Garemlin, Nov 20, 2013.

  1. Garemlin
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    Well it was fun while it lasted. It looks like the flagship G2, Flex and the Nexus 5 will be the last we see of LG in the smartphone arena. For a while anyway. What does this mean for the Nexus line??? Back to Samsung??? Or maybe we will finally see a Motorola Nexus. A 5" version of the Motorola X in Nexus form would be a sweet phone for sure.



    Here is the bad news.:


    A preemptive move to reduce risks

    Struggling in the smartphone business, LG Electronics is shifting its focus to TV. As the financial circles began to put pressure on the chaebol conglomerates using funds as their weapon, LG Electronics is believed to have started to make adjustments to send a positive signal to the market. With the year-end reshuffling just in the offing, a massive shake-up of the MC Division (smartphone) and the HE Division (TV) is forecast.

    According to the industry on November 19, LG Electronics recently began to make advance adjustments for the manpower restructuring of the MC Division. Currently, the management is known to be trying to choose between a shock treatment focused on reduction in labor force and gradual downsizing. During the year-end season of personnel realignment, it will be possible to sense the general direction of the restructuring of LG Electronics. Transfer of personnel between the MC Division and the HE Division at the top and middle level of managers is likely to be brisker.

    LG Electronics is more likely than not to maintain the current level in the R&D sector of the MC Division, but greatly reduce the support organization. Some forecast that LGE would reduce 10% of the entire manpower of the MC Division. LG Electronics has been restructuring the manpower intermittently over the years, e.g. receiving job-change applications from some of the employees of the MC Division. The focus of the restructuring was placed on some support departments like marketing and purchasing. However, it seems that not only the MC Division, but also the entire company will undergo large-scale personnel realignment.

    “Recently vice-chairman Koo Bon-joon is often mentioning the smartphone business risk,” a core insider of LG. “In the long run the smartphone business is important, but he is trying to concentrate on the TV business, something that LGE can do well in.”

    Although LG Electronics recently released its strategic smartphone G2, its global smartphone market share fell to No. 5 in Q3. LGE was overtaken by Chinese companies Huawei and Lenovo as they rapidly increased smartphone shipments. Its market share fell from 5%-ish to 4.7%.

    The pressure from the financial circles, e.g. the main creditor banks, seems to have played a big role. Recently financial institutions seem to be paying much attention to managing the risks of chaebol groups in the wake of the STX and Tongyang crises. The Dongbu Group succumbed to the pressure from financial institutions, and gave up the semiconductor business. It is believed that LG Electronics cannot ignore the concerns in the financial circles over the smartphone business. LGE will reinforce its competency in the smartphone business in the long run, but concentrate its resources on TV to overcome the crisis it faces.

    “With the premium market slowing down and Chinese companies charging forward in the sluggish mid-to low-priced market, there is not much choice for LG Electronics,” said a securities analyst. “For starters, it may be better off to improve its financial status by increasing its TV sales, and then invest properly in the smartphone business.”


    Source: Korea IT news
  2. Astrix
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    Astrix Active Member

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    LG G2 will be my first and the last LG Branded phone.

    Anyway, I never regret owned LG G2 even if there is no firmware update.

    Still enjoying and loving my G2 after divorce with iFruit and Note N7000

    TapaTalking from Republic™Of Android
    Last edited: Nov 20, 2013
  3. kodiak799
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    kodiak799 Well-Known Member

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    I didn't know they ever shifted focus AWAY from tv's. LG makes a lot of stuff.

    Maybe with Google backing Moto they don't see enough volume for a 4th OEM to make money on phones.
  4. Asgard
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    Asgard New Member

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  5. johnomaz
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    johnomaz Well-Known Member

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    So weird after developing a flexible screen and all that tech.
  6. jspradling7
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    jspradling7 Active Member

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    Same here. I'm glad I bought a G2 it's a cool phone with a lot of good things about it. My S4 still gets the lion's share of carry time though. I won't say that I won't buy another LG phone some day but I'm not excitedly looking forward to the next LG phone like I am the Galaxy phones.
  7. popcenator
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    popcenator Droid X Rescue Squad Rescue Squad Premium Member

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    Well, I gave them a chance.. We'll see what they do about the update. If nothing, I'm done. It's frustrating when a company dumps support for a device right after you purchase it.

    Sent from my VS980 4G using Tapatalk
  8. JohnnytheK
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    JohnnytheK Well-Known Member

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    Where I work we have over 500 LG TV's and I'm not impressed. We've had to replace over a dozen and about half don't accept HDMI input. Love their cloths washers!

    Sent from my SCH-I605 using Tapatalk
  9. SILVER COUPE
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    well that explains the price drop shortly after launch. still happy with this phone and no need to root just yet.
  10. Garemlin
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    I'm gonna see if I am still within my 45 day window and take this thing back now. I love it. But I see very little or no future support.

    Tap'd from my LG G2
  11. kodiak799
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    kodiak799 Well-Known Member

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    I've always kind of felt like they are a 2nd-tier mfr. I think they've managed to create a little better perception just with volume, but you never hear about them (maybe except for flip phones) as a leader in quality. TV's for a long time have bee all about Sony, Panasonic and Samsung.
  12. kodiak799
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    kodiak799 Well-Known Member

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    I would guess they may become a supplier of smartphone/tablet displays as the R&D wouldn't seem to be that disconnected from their tv panels. But they'll cut their losses on actually designing and manufacturing phones.
  13. Big Ry
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    Big Ry New Member

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    This makes zero sense. They basically just came to the smartphone scene a year ago and have made great progress. Especially now with the G2, they can't even keep them in stock. And what about their new curved screens and upcoming nexus devices? I've always thought LG had pretty solid build quality, all the way back to flip phones. They're one of the best out. I just can't understand how they could pull out now. I'll be pissed if I don't get kit kat on this brand new, freshly released G2.

    Tapped from my G2
  14. devdeuce
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    devdeuce Member

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    I agree, they get to a point where they have I'm guessing one of the most popular phones and then give up on it. Pretty strange business.
  15. Big Ry
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    Big Ry New Member

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    I'm still considering this a rumor since it only came from a Korean news agency. Was it the Korean central news agency? Lol

    Tapped from my G2
  16. Garemlin
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    I hope it is a rumor. I really do. I love this phone. And I am sure they could make the follow-up a Samsung killer with it's growing popularity. The G2 is making people take notice that there are other options besides Samsung. It is being marketed very well and being received by the general public and tech enthusiasts. To jump ship when they have a winner on their hands is a completely dumb move.
  17. Big Ry
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    Big Ry New Member

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    Yup, makes absolutely no sense

    Tapped from my G2
  18. mountainbikermark
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    mountainbikermark DF Super Moderator Staff Member Premium Member

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    That's part of the problem. LG wants to be the next Samsung BUT investors want Samsung like return numbers NOW. LG hurt itself in the past with poor returns, no matter the reason, and didn't get the benefit of free global advertising by Apple bringing their devices to the main stream public eye via litigation news the way Samsung did.
    The tin hatter in me thinks it's more than coincidental that every time numbers start to fall for Samsung, who just so happens to make a bunch of parts for, Apple comes to their rescue via trial news. Last I remember LG lost its contract with Apple, as a secondary supplier, for screen parts after iPad 2 screens made by them were the said to be the source of the headaches some owners were getting when their shiny new device had wet glue inside and other bugaboos .

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    Last edited: Nov 21, 2013
  19. Big Ry
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    Big Ry New Member

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    We're not talking about some up and coming startup. LG is a gigantic company that sells all kinds of stuff. I just can't imagine them calling it quits so quick. It's like getting a gym membership, then quitting after your first set in the squat rack

    Tapped from my G2
  20. Garemlin
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    Maybe they are realizing, unlike Samsung has yet to figure out, that being a jack of all trades and a master of none is not the way to go. Why do you think Motorola has such superior hardware?? Because building communication hardware is all that is all they do. Both Samsung and LG have their fingers in everything from phones to refrigerators.
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