LG Struggling, CEO Resigns

Rob Jackson
14 years ago

Android could very well become the #2 mobile operating system by the end of 2010. While the holidays will offer a huge thrust, analysts have predicted that more rapid adoption and promotion by Samsung and LG would fuel further momentum and growth. Samsung has been absolutely crushing it lately, launching their Samsung Galaxy S on all 4 American carriers and quickly selling 1 million units in the states, followed by last night’s announcement that the Samsung Galaxy Pad would be available on the BIG 4 as well – and in time for the holidays.

LG, on the other hand, seems to be stuck in the mobile doldrums. The Wall Street Journal is reporting that LG Electronics CEO – Nam Yong, resigned Friday “amid difficulties reshaping its cellphone business for smartphones.”

I can’t comment on the inner workings of LG, but compared to other top manufacturers they’re certainly getting blown out of the water. HTC and Motorola seem to run the Android show featuring Sony Ericsson and Samsung. But Sammy now seems poised for a starring role, too. Why is LG stuck on the Android D-List?

Hopefully this move will be a kick in the pants and the company can turn things around in relation to Android. Considering Android is the fastest growing mobile OS, it seems like success in this area can make or break your entire mobile strategy. Dumb phones and feature phones still exist (and may even thrive in lesser developed countries), and you’ve still got other proprietary operating systems such as Bada and WebOS eager to make an impact, but clearly LG is understanding they missed the first Android boat and they don’t want to be stuck on “we can’t sell any phones” island.

Just last month, we heard LG was looking to cut their handset offering from 145 to 70 in an effort to focus and streamline their smartphone offerings. And 15 of their 20 smartphones would be Android. With the hopes of selling 6 million smartphones by the end of 2010, you have to wonder if obvious shortcomings in those goals were to blame for Yong’s resignation. If you ask me… they seem a bit dazed and confused.

To their credit, LG has been working on their Optimus line of Android phones but as Quentyn summed up only a few days ago, “these phones aren’t the powerhouses we once thought them to be.” And what about an Optimus Pad? In my opinion there is still PLENTY of room for mid-range and lower end Android phones such as an LG enV Android, but the company NEEDS that high end Android to tear the game open and attract consumers (and attention/brandability) to their entire line of Android Phones.

I’m hoping LG and their new CEO, Koo Bon-joon, can turn around their Android initiatives. With Android, customers win when more competition fuels high quality companies to put out the best products and push each other further. Hopefully this is the push LG needs.