The South Korean consumer electronics tech giant LG overtook both Motorola and Sony in 2008 to become the worlds third largest handset manufacturer. However, LG’s selection of smartphones for the US market is currently pretty weak. This weak lineup raises questions as to whether LG will be able to maintain its position in this fast growing and dynamic market. Analysts are pretty sure that in 2010 LG’s handset division will have decreasing profits because the company is behind in the fast-growing and highly profitable smartphone sector of the market.
During last week’s Consumer Electronics Show (CES) in Las Vegas, Nam Yong, LG’s chief executive officer, announced that that the company will focus its smartphone development on Google’s Android OS. “We will have smartphones running on Windows Mobile, but about 50 percent of our smartphone models will run on Android,” Nam told reporters at CES.
LG will lean heavily on content and app development for the Andriod OS, “The operating system itself will not guarantee competitiveness in mobile content,” Nam said. “For now, Google’s content seems to be the only alternative.” Google is now maneuvering to take back direction of the Android OS by introducing its own smartphone, the NexusOne. Hopefully, this will ensure an in-demand range of Android content and apps for Android smartphones. With smartphones content and apps are key.
LG is aware that they have to challenge the Apple’s iPhone and Research in Motion’s Blackberry to keep their market position. “Handset markets will be polarized between low-end phones and smartphones in the future,” Mr. Nam said. “We have a sense of crisis that if we don’t prepare within the year, we could be left out of the market.”
Source: Yonhap News Agency – LG Electronics looks to Android in competition with smartphone rivals: CEO