taking a beating in the smartphone market today. The company has been forced to
cut its targets for sales of smartphones and regular phones for the quarter
significantly in the face of slowing sales. LG is the third largest phone maker
globally in terms of revenue behind Samsung and Nokia.
To make the slows sales even more difficult on shareholders and analysts, LG is
unable to give any indication of when it will be able to turn its phone
business around after four consecutive quarters of losses. LG is also falling
behind rivals like Samsung and Nokia in its ability to roll out new and
LG handset division head Park Jong-seok 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
LG made significant cuts in its estimates for 2011
smartphone sales reducing the 30 million it originally predicted down to 26
million handsets. Its overall handset sales forecast was chopped from 150
million to 114 million for the year. In the first half of the year, LG was able
to move 50 million phones with 10 million of that number being smartphones.
LG isn't alone in struggling with sales; Nokia is also having a very hard time
in the market today. Nokia recently cut its prices for smartphones in Europe to
try to improve sales and the company is banking on its deal with Microsoft for
Windows Phone 7 smartphones to pull its sagging smartphone business out of the
Analysts are expecting LG to report another loss from handset sales in the
quarter than ended in June. This is expected because LG was unable to make
handsets that challenged Samsung and Apple devices on the market. LG has had
some popular models though like the Optimus 2X and the Optimus Black.
are predicting that LG will report losses for Q2 in the area of 70-90 billion
won. The loss in the same quarter of 2010 was $112.5 million.