LG Electronics CEO resigns after smartphone struggles

LG logoAfter struggling to compete with the iPhone and other high-end smartphones, LG Electronics chief executive Nam Yong resigned Friday.

Yong is the latest in a series of mobile executives that have resigned or been ousted after lackluster sales in the smartphone market. In the course of a week, Nokia's CEO, Chairman, and smartphone chief all announced their resignations.

Bon-joon Koo, "a member of the founding family of the broader LG conglomerate," will replace Yong as CEO, according to a report by the Wall Street Journal. Koo is currently CEO of LG International and was previously an executive at LG Display.

Smartphones are being blamed for the recent corporate turnover and shaky quarters. "Numerous makers, including Nokia and LG have attributed declines in profit margins to pressure by other smartphone makers such as Apple Inc. and Research in Motion," the report noted.

Although Nokia and LG are ranked number one and number three in global handset shipments respectively, they have, for the most part, been shipping budget low-margin handsets, rather than pricier offerings that can compete with the iPhone or BlackBerry.

In August, Research firm Gartner called LG's strategy "risky." After analyzing second quarter data, Gartner noted that LG's average selling price fell 27.7 percent even as handset sales fell year-over-year.

Recent data from comScore revealed that LG managed to hold on to its second-place ranking of mobile OEMs in the U.S., but the Korea-based company was missing from the list of "Top Smartphone Platforms."

LG launched its first global smartphone this week: the Android-based Optimus One, but the news is too little, too late for Yong.

The company is also trying to make up for lost time in tablet market, where the iPad has taken an early lead. Last month, LG vice president Chang Ma proclaimed the company's upcoming Optimus tablet as "better than the iPad."

Source: AppleInsider

Tags: LG, mobile phones

Add comment

Your name:
Sign in with:
Your comment:

Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party

Last news

You can use a security key instead of having a code sent to your phone
Adobe says that the AI can now achieve the intended result in seconds
A new security protocol replacing the aging WPA2
Download and install at your own risk, of course
More iPhone parts likely to be produced by Samsung
Starting on Friday, video views on YouTube will start to be counted by the Official Charts Company
LG has already announced two new V-series members in 2018
The method is blocked and the hack doesn’t work, it adds
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 /
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /

News Archive



Do you use microSD card with your phone?
or leave your own version in comments (11)