LG Electronics axes its CEO due to a nosedive in handset profits

LG Electronics axes its CEO due to a nosedive in handset profits
The CEO of LG Electronics, Nam Yong, has stepped down, after a nerve-racking dive in profits from its mobile handsets division. The operating profits from cell phones slumped with the astonishing 90%, compared to last year, clearly indicating that LG is doing something wrong.

Mr Yong will be replaced by the brother of the LG Group chairman. LG's share of the cell phone industry's profits has shrunk more than half since the iPhone introduction, and the proliferation of Android smartphones.

The company is jumping on the Android bandwagon with full force, hoping to reverse these trends, and it's aiming to carve a niche for itself by outing five Windows Phone 7 devices by year-end. Will it succeed? We'll know more when the year is up.

source: LG

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7 Comments

1. hcbarclay

Posts: 62; Member since: Dec 20, 2009

I read on another site that he resigned???

2. icesick06

Posts: 30; Member since: Nov 03, 2009

about damn time. Hopefully they can start putting out handsets that dont reboot themselves when they are just sitting there. I hate selling Env3 and touches to people, cuz i know they are gonna come back in acting a fool when the phone starts messing up.

3. zerovampire311

Posts: 42; Member since: Jun 22, 2009

Right? I've had a customer go through 6 EnV3s so far, and Big Red STILL won't give her anything different. I was suprised to see how many EnV touches were glitching out, considering I got one the day it launched, and never had a single issue with it up to my Droid X upgrade! Neither of them are nearly as erratic as the Chocolate Touch though, I can't count how many of those I've seen failing hard.

7. PapaJay224

Posts: 866; Member since: Feb 08, 2009

cheers to agents upselling multi fru's is to blam for that one. You give people an inch and they take a mile.

4. CRICKETownz

Posts: 980; Member since: Oct 24, 2009

Not fond of LG anymore since the days of my LG Dare, but unfortunately not much has changed since then. All they've done is add Android to their list of phone's software. Touchscreens are terrible visually and to the touch compared to what's offered now from other manufacturer's. They still good tv's and parts for refrigerators as well other appliances...i guess they'll have that to fall back on.

5. Mob Boss unregistered

I beg to differ with some of you. Granted, a few models had problems. But, I had a Vu on AT&T and a Voyager and a Versa on Verizon. Never had a problem with any of them, loved them all. Maybe some people are just retarded and don't know how to use their phones?

6. Sniggly

Posts: 7305; Member since: Dec 05, 2009

Mob Boss, gotta tell you that you happened to get the good ones. When I was in warranty department, I replaced 5 EnV2s a day. A DAY. Extrapolate that out to a month, with 100 representatives all replacing at the same rate, and you're talking about 150,000 EnV2s a MONTH being replaced by warranty department. And I'm pretty sure that not everyone who has had an issue with their phones has called into VZW warranty department.

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