Added by James Morley on January 6, 2011
Third biggest handset maker in the world, LG is struggling with highest losses in history after losing out to Apple in the competition for smartphones.
Its product line was criticized as being weak and cost of developing and marketing its low-priced phones exceeded budget. This meant that LG was left with not just huge costs and low profits but also a bad brand recall.
The South Korean company is aiming for doubling its smartphone shipments and is focusing on better and more expensive products to defeat its rivals. The Vice President and Head of Marketing admitted that high costs and bad reputation will hurt the company.
However, LG is confident of putting up a good show after coming up with better products like Optimus One. It is of focusing on improving its premium product offering in 2011. Last year, LG sold close to 7 million smartphones.
This year, LG is aiming for at least 14 and up to 21 million smartphones.
Business has improved in the last stretch of 2010 with more than 3 million units of Optimus One being sold after its October launch. This android powered smartphone is the best selling phone from the LG stable.
LG is trying to beat Apple’s iPhone and Samsung’s Galaxy S in the premium market.