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LG shifting its focus away from smartphones? Absolutely not!

Posted: , by Alan F.

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LG shifting its focus away from smartphones? Absolutely not!
UPDATE: LG has reached out to inform us that the rumors of it shifting its focus away from smartphones are completely untrue. Putting all of the information that follows below in the fiction category, an LG spokesperson has issued the following statement for us to let us know just how serious LG is when it comes to its smartphone business:

"Reports of LG shifting its priorities away from smartphones are completely untrue. This is a rumor based on non-credible sources and uninformed speculation. We are more committed than ever that we will be a major player in the mobile space. But don’t just take our word on this, look at the products we’ve introduced this year as evidence of our commitment and capabilities."
---

You would think that these would be great days for LG in the smartphone industry. The LG G2 is one of the most powerful and popular Android models and the Korean OEM is also known for its most recent stock Android handset, the Nexus 5. Still, LG doesn't appear to be terribly happy with these achievements. Even launching a phone with a unique form factor in the LG G Flex has failed to keep LG from thinking about concentrating on other industries.

According to those in the Korean media, LG is going to reduce its focus on smartphones. This is sad considering how far the company has come. LG's first U.S. smartphone, the LG Incite, suffered from a poor build quality` and the company has worked hard to get to where it is now. Those in the know say that LG is shifting its manpower from smartphones to televisions. LG’s Vice-Chairman Koo Bon-joon allegedly still believes that smartphones will be an important industry in the long run, but in the short run, the executive feels that LG needs to play it safe by focusing on a business that it is doing very well in right now. 

LG isn't sure if it will reduce headcount in its smartphone division gradually, or if it will do it all at once. R&D payroll will probably not get touched, but smartphone support staff will probably see the loss of a number of employees. LG might see the smartphone business as cyclical while producing televisions could be a steadier contributor to the bottom line.

"With the premium market slowing down and Chinese companies charging forward in the sluggish mid-to low-priced market, there is not much choice for LG Electronics. For starters, it may be better off to improve its financial status by increasing its TV sales, and then invest properly in the smartphone business."-Securities analyst

Keep in mind that LG isn't disappearing from the smartphone industry completely, just cutting back on how much of the company will be devoted to the device.

source: ETNews via GforGames

62 Comments
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posted on 20 Nov 2013, 14:29 15

1. Ninetysix (Posts: 1659; Member since: 08 Oct 2012)


Couldn't compete with the big monopoly (Samsung). Oh wells.

posted on 20 Nov 2013, 23:33 2

34. itsdeepak4u2000 (Posts: 2693; Member since: 03 Nov 2012)


That's not true, but this thing would keep them very much behind in the competition.

posted on 22 Nov 2013, 07:47

55. itsdeepak4u2000 (Posts: 2693; Member since: 03 Nov 2012)


I knew it.

posted on 21 Nov 2013, 01:13 12

38. Dr.Phil (Posts: 916; Member since: 14 Feb 2011)


I feel like people either don't actually read these articles or they are missing the big picture. No where does it say that LG is going to stop or even slow down on it's smartphone production. All it's saying is that they are shifting their focus to televisions so that they can take the revenue from that (since it's already a successful business and has the potential of getting them far more revenue than their smartphone business) and put that revenue back into investments in their smartphone industry. It is by far the smartest move they could ever make. They make more money by selling televisions than they do by having their entire focus on smartphones. If this works out the way they want it to, then it will mean the budget they have for their smartphone industry will be significantly more next year than it is this year. I mean just to give you some numbers: LG makes only a $200 million revenue from smartphone sales versus a $4.5 BILLION revenue from television sales. So now imagine if some of that revenue trickled back into their smartphone business. They could REALLY be making some innovative products then.

By the way, Samsung "shifted their focus" to displays a couple of years ago as well which enabled them to produce some of the display technology you see in Samsung smartphones today.

posted on 22 Nov 2013, 02:29 2

50. rihel_95 (Posts: 220; Member since: 21 Mar 2012)


Ah u r back. I missed u (& ur comments)!

posted on 20 Nov 2013, 14:35 19

2. E.S.1 (Posts: 291; Member since: 14 Sep 2013)


Damn it lol... I just bought an LG G2 (The best phone I ever had) after owning Samsungs for years, oh well...

posted on 20 Nov 2013, 14:43 3

5. Brendan126 (Posts: 13; Member since: 09 Dec 2010)


Yeah. Same here. Such a great phone! Now I'm sort of regretting getting it over the Nexus 5... Damn, oh well. :P

posted on 22 Nov 2013, 07:29

53. E.S.1 (Posts: 291; Member since: 14 Sep 2013)


Well, I guess we are safe :)

posted on 20 Nov 2013, 14:49

6. Ravail (Posts: 182; Member since: 14 Oct 2011)


same boat here. :/

posted on 20 Nov 2013, 19:12 2

28. _PHug_ (Posts: 380; Member since: 11 Oct 2011)


Well this is what I get for supporting the underdog.
Should have paid the extra $200 to get the Note 3 I guess :(

What's the chances of us G2 owners getting official 4.4 and beyond updates.

posted on 21 Nov 2013, 00:49

35. lallolu (Posts: 237; Member since: 18 Sep 2012)


The chances were low but now miniscule.

posted on 21 Nov 2013, 08:51 2

42. Finalflash (Posts: 1802; Member since: 23 Jul 2013)


Nope, just cynogen it or other custom rom, problem solved. This isn't iOS people, you do not have to stick with the crappy manufacturers ROM.

posted on 22 Nov 2013, 07:32

54. E.S.1 (Posts: 291; Member since: 14 Sep 2013)


I read somewhere that LG said Nov or Dec. before we get the update.

posted on 20 Nov 2013, 14:42 8

3. Yaldabaoth (Posts: 33; Member since: 06 Jun 2012)


Remember that LG bought webOS assets for use on their televisions. They may be looking to dominate the 2k/4k interactive television space by focusing on web integration, apps, etc.

posted on 20 Nov 2013, 14:43 11

4. darkkjedii (Posts: 11943; Member since: 05 Feb 2011)


Only two smartphone makers matter. Apple and Samsung, the rest just fill in the pie.

posted on 20 Nov 2013, 14:55 20

7. E.S.1 (Posts: 291; Member since: 14 Sep 2013)


Not true...

posted on 20 Nov 2013, 16:30 6

17. PBXtech (Posts: 980; Member since: 21 Oct 2013)


Agreed. Some of the smaller companies keep those two in check from getting complacent. Xiaomi is eating Samsung's lunch in China, as an example. I'm sure both are keeping eyes on Nokia.

posted on 21 Nov 2013, 01:09 3

37. WindowsiDroid (Posts: 110; Member since: 22 Jul 2013)


Indeed, Nokia is moving faster than what I expected, I expect that Nokia will totally fall down, but today Nokia still manage to compete with this smartphone industry.

posted on 21 Nov 2013, 08:54 1

43. Finalflash (Posts: 1802; Member since: 23 Jul 2013)


But the problem is the US government, they are anti-competition to a ridiculous extreme. Not only will they not let the Chinese sell their phones here, they won't even let them make it locally and sell it (only the NSA can spy on US citizens). They won't even let the Koreans have justice on the locals. Without competition, everyone will suffer in the US other than Apple who largely sits on their laurels for years. So do not expect the monopolies to break in the US, expect it in the EU and other regions.

posted on 20 Nov 2013, 14:59 1

9. Long1 (banned) (Posts: 399; Member since: 18 May 2013)


Yup.
But Apple is going aside little by little. Who will take Apple's place?
It's scary Samsung to take over all the market alone.

posted on 20 Nov 2013, 16:09 1

13. darkkjedii (Posts: 11943; Member since: 05 Feb 2011)


Don't bet your house on that

posted on 20 Nov 2013, 16:12 7

14. DAddYE (Posts: 48; Member since: 04 Oct 2013)


Sony is coming, stay tuned ;)

posted on 20 Nov 2013, 19:11 9

26. 9thWonderful (Posts: 232; Member since: 24 Jan 2013)


Yea that's what ppl said about Sony 3 phones ago...I don't think Sony is a threat to anyone in the smart phone space...at all.

posted on 21 Nov 2013, 04:49 1

39. cc3493 (Posts: 155; Member since: 06 Jul 2013)


lol its like those people who keep on saying its the year of linux...

posted on 22 Nov 2013, 12:01

59. ArtSim98 (Posts: 2956; Member since: 21 Dec 2012)


Sony is already here!

posted on 22 Nov 2013, 12:01

58. ArtSim98 (Posts: 2956; Member since: 21 Dec 2012)


You're so fuc*ing stupid that it annoys me. It's like you don't allow anything that you don't like to be in this world. Like you don't want ANY competition in this world. And that you don't want any changes. That you would buy even a toilet made by apple. Even if it looks the same, has the same features than a normal toilet but has an apple logo on it and costs 10x more. All that comes to my mind about you is Hitler. Just want's one thing to dominate the world. What a stupid idea.

posted on 22 Nov 2013, 14:45

60. ecmedic4 (Posts: 202; Member since: 02 May 2013)


I don't think the name calling was called for. Soon as you called dark fuc*ing stupid you lost all creditability. I think what he was meaning is that Apple and Samsung are the only ones making money and have the most marketshare, the ones that are most talked about. He never said anything like what your implying. He never said anything about wanting Apple to dominate the world. I think you need to chill and let others have their own opinions, just like you have yours. You obviously have a hate for Apple, but that doesn't mean everyone does or should. So what if dark has a preference for or likes Apple products, his choice and his money. I honestly don't think you should concern yourself so much with his preferences. He also never implied he didn't want any competition, your just freaking out on him over a simple post. I think you need some Ativan or just need to take a break from the computer as you sound pretty fanatic and are putting words in his mouth that he never said.

posted on 22 Nov 2013, 14:57

61. ArtSim98 (Posts: 2956; Member since: 21 Dec 2012)


He didn't say it directly of course but that what he actually thinks. You can (well you should be able to) easily tell from all his comments what he actually thinks and what kind of person he is.

posted on 20 Nov 2013, 14:55 6

8. jove39 (Posts: 1305; Member since: 18 Oct 2011)


LG is moving only support staff...it's not bad.

posted on 20 Nov 2013, 15:10 5

10. Android4Ever (Posts: 86; Member since: 12 Aug 2013)


Its about time! They finally realized that no one wants a clone Samsung phone. Very nice move LG! Bravo!!!

posted on 20 Nov 2013, 18:47 11

25. remtothemax (Posts: 235; Member since: 02 May 2012)


you realize that fanboyism is ultimately self destructive. the only reason samsung is who they are today is because they made something like an apple clone phone.
and i'm not taking shots with that comment. everyone clones everyone else. i'm just pointing out that the only reason they are who they are today is because they came into their own with the razor edge of the iphone against their throats.
why do you think competition-less state monopoly protected industries are havens for backwardness and inefficiency?
there also, i am not saying samsung is or is like a state sanctioned monopoly (i just know how fanboys and/or trolls work with regards to saying exactly what you mean). i am saying that the only reason samsung is spending millions to create innovations for phones as great as the gs4 and the n3 is because of the existence of lg, sony, htc, and others.
if you truly loved samsung and their devices the best thing you could hope for is for them to lose marketshare and fast.
because that sort of threat is what makes any of the great smartphone makers great.
anyone wishing for samsung to have a monopoly is effectively the same as an apple fanboy because the end result of either of those groups getting their fondest dreams is basically identical.
so go on, continue to fanboy, but i just want to point out the utter mindlessness and stupidity of your smartphone ideological position. cheer for your tribe. just remember that it is a tribe the next time you accuse anyone of being like a certain wooly, baaing mammal that often comes up in these discussions.

posted on 20 Nov 2013, 15:35 3

11. Mrmark (Posts: 152; Member since: 26 Jan 2013)


webOS phone please ! Lol had to say it sorry ...maybe not

posted on 20 Nov 2013, 15:54 2

12. GoBears (Posts: 366; Member since: 27 Apr 2012)


LG has always made awesome TV's. All I ever buy. I really like the Flex too, I just don't care for their Android skin.

posted on 20 Nov 2013, 16:16 2

15. jroc74 (Posts: 4944; Member since: 30 Dec 2010)


"Keep in mind that LG isn't disappearing from the smartphone industry completely, just cutting back on how much of the company will be devoted to the device."

I guess some ppl missed this lil tidbit of info. Read the entire article ppl, LG isnt giving up on smartphones, just going to focus more on their TV's.

posted on 20 Nov 2013, 16:32 4

18. PBXtech (Posts: 980; Member since: 21 Oct 2013)


They ramped up phones if anything else. Getting two Nexus models helped a lot as well. Personally, I'd have never considered getting a LG phone if it wasn't for the Nexus 4 being so solid. Right now, I'm loving my G2.

posted on 20 Nov 2013, 16:20 1

16. Deadeye37 (Posts: 80; Member since: 25 Jan 2011)


I hope they put those phone engineers to good use on the smart TVs. To make a smart TV with a good interface & features that the phones have would be really good.

posted on 20 Nov 2013, 17:17 10

19. egbtmagus (Posts: 57; Member since: 12 Apr 2012)


LG is just slowing rollout of handsets, they don't plan to flood the market every 6 months with 12 devices like Samsung does. They don't plan to have the LG G2, G2 Active, G2 Mini, G2 Mega, G2 Ultra, G2 Flex and G2 Advance. They want a small product lineup thats more directly aimed.

posted on 20 Nov 2013, 17:25 1

21. jroc74 (Posts: 4944; Member since: 30 Dec 2010)


This sounds logical. So many good things said about the last 2 Nexus's... LG might take that Nexus, iPhone strategy and run with it.

posted on 20 Nov 2013, 19:12 7

27. ncarlosmiguel (Posts: 206; Member since: 14 May 2013)


You forgot G2 Zoom.

posted on 20 Nov 2013, 22:01 2

31. justsayit (Posts: 213; Member since: 09 May 2013)


so many g2 version will just make the sales lower

posted on 20 Nov 2013, 17:21

20. Cyberchum (Posts: 270; Member since: 24 Oct 2012)


And people wished Nokia had joined the Android ship. Small companies like Nokia can't survive here, only conglomerates like Sony, Samsung, LG etc can, at least other divisions can support them when their purse runs dry.

posted on 20 Nov 2013, 18:39 5

24. remtothemax (Posts: 235; Member since: 02 May 2012)


i think the reason people wanted nokia to jump on the android ship is because specifically they are the opposite of a small company.
yeah, they sort of lost everything, but the argument is that if they had jumped to android they might have turned it around.
up until very recently they were the smartphone company. no question. they may die, but they are definitely not small.

posted on 21 Nov 2013, 08:09 1

41. tasior (Posts: 220; Member since: 04 Nov 2012)


LOL.
I remember watching stats of the biggest companiest several years ago. Nokia was the size of Microsoft, and three times of Google...
I know that Nokia was never big in US market, and recently it's a shadow of its former strength, but it's just funny reading opinions of people who think that Nokia has always been a small company...

posted on 21 Nov 2013, 21:47

46. corporateJP (Posts: 1570; Member since: 28 Nov 2009)


Nokia may not be what it was five or ten years ago, but calling them "small" makes you look extremely unknowledgeable. Their patent portfolio alone is worth billions of dollars.

posted on 20 Nov 2013, 18:30

22. joejoe5709 (Posts: 4; Member since: 09 Oct 2013)


I think that's a bad idea. I think they should follow Samsung and try to make their TV's more integrated with mobile tech. People are very willing to purchase devices that are all the same brand especially if they communicate well with each other. If you have an LG TV and you enjoy it, you're likely to buy an LG phone. And it goes both ways. Sorry to say, but Samsung's doing it right. Keep at it, LG!

posted on 20 Nov 2013, 18:35

23. mike2959 (Posts: 247; Member since: 08 Oct 2011)


If they would support their products with updates. I've had the G, G Pro, and now the G2. All awesome phones, so I end up rooting, custom ROM. Not to many custom ROMS though. Great phones.

posted on 20 Nov 2013, 20:19 3

29. GeekMovement (Posts: 1505; Member since: 09 Sep 2011)


Bugger I personally don't want an Apple vs Samsung competition. I hope Nokia, Sony, and Motorola will pull back up.

posted on 20 Nov 2013, 21:36

30. TechnoTechyes (Posts: 56; Member since: 24 Jan 2011)


All you need is 10,000 people earning a $1/hr. to build the phones, and 1,000 lawyers earning $1,000/hr. to defend them... What's the problem?

posted on 20 Nov 2013, 22:09

32. justsayit (Posts: 213; Member since: 09 May 2013)


lg need to more focus on its mid-low range device
more suggested to use the latest mediatek soc instance of 2~3year old mid-low range soc
and also their design, after optimus g , every new phone just has a terrible design
as a lg fans, feel sad about this
and also they should launch their phone global ASAP after anounced it

posted on 20 Nov 2013, 22:20 3

33. Taters (Posts: 3261; Member since: 28 Jan 2013)


They should just pull out of the USA like Sony. You can follow common sense when catering to other countries. The USA is unpredictable because the consumers are just so stupid.

posted on 21 Nov 2013, 01:08

36. Darkerm (Posts: 157; Member since: 31 Jan 2012)


I just hoping for LG G3 in jan 2014.

posted on 22 Nov 2013, 08:54 1

56. E.S.1 (Posts: 291; Member since: 14 Sep 2013)


If that happens I'll probably get it. Just because how good my LG G2 is. The best phone I ever had.

posted on 21 Nov 2013, 04:50

40. bugsbunny00 (Posts: 1143; Member since: 07 Jun 2013)


so its either samsung or sony on android,head to head.

posted on 21 Nov 2013, 14:50

44. Tsepz_GP (Posts: 822; Member since: 12 Apr 2012)


Thats a shame, I thought LG had finally arrived in the big leagues, with the G2 taking on the GS4, Note 3, iPhone5S, HTC One and One Max.

LOL at the Sony fanboys who say "Sony are coming", that rubbish is getting older than Apple iPhone's death rumours, lol. You've BEEEEN saying Sony is on their way and each year they fail. Thanks for the laugh though.

posted on 21 Nov 2013, 15:04

45. linaresx (Posts: 85; Member since: 13 Jun 2013)


People buy TVs about every 10 years but we buy mobile phones every 2 or less. Did Steve Ballmer leave Microsoft to head up LG?

posted on 22 Nov 2013, 02:06

47. xperiaDROID (limited) (Posts: 5577; Member since: 08 Mar 2013)


If Samsung's here, LG is also here. So they won't give up so fast, but they made consumers give up on their phones. For example, it's almost December and LG still haven't release the G2 in some countries including mine. This is one of the example of why LG can't beat Samsung.

posted on 22 Nov 2013, 02:09 1

48. GeekMovement (Posts: 1505; Member since: 09 Sep 2011)


Woot! I'm glad they're not shifting their focus away from the mobile market. I will look forward to their future handsets.

posted on 22 Nov 2013, 02:28

49. livyatan (Posts: 701; Member since: 19 Jun 2013)


Major fail of journalism, PA!
Can you Please ease down with spam articles?
I hope this will teach you a lesson

posted on 22 Nov 2013, 03:16

51. Jericho (Posts: 302; Member since: 12 Nov 2011)


All i can say is EPIC FAIL!!!!!!! on PA's Part.

posted on 22 Nov 2013, 03:20 1

52. Reeyawn (Posts: 65; Member since: 21 Apr 2013)


At least give us LG users a timeframe when you will give us KitKat to show that you are commited.

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