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This article was published on July 7, 2011

LG cuts smartphone targets in wake of Apple and Samsung success

LG cuts smartphone targets in wake of Apple and Samsung success
Matt Brian
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Matt Brian

Matt is the former News Editor for The Next Web. You can follow him on Twitter, subscribe to his updates on Facebook and catch up with him Matt is the former News Editor for The Next Web. You can follow him on Twitter, subscribe to his updates on Facebook and catch up with him on Google+.

Electronics giant LG has been forced to cut its smartphone and handset targets after its Optimus line of Android and Windows Phone handsets failed to mount a serious challenge against Apple’s iPhone and Samsung’s Galaxy S range, Reuters reports.

The world’s number three handset vendor will lower its smartphone targets from 30 million units to 24 million, reducing its overall handset target from 150 million to 114 million units as it hopes to reverse its four consecutive quarterly losses.

Park Jong-seok, head of LG’s handset division, said:

“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.”

The Korean vendor is expected to post a fifth quarterly loss as it has not introduced new products that have been able to compete with Apple and Samsung but has started to slowly recover, helped with the demand for its Optimus 2X and Optimus Black Android smartphones.

While LG is expected to narrow second quarter losses to around 90 billion won, Samsung is expected to post operating profits of 3.7 trillion won, after selling 19 million smartphones in its second quarter.

LG hopes that its line of 3D devices will be able to reverse the trend and help it compete with its more successful rivals.