LG denies layoffs in its mobile deivision, corrects quality problems with Apple iPad 2 panels

LG denies layoffs in its mobile deivision, corrects quality problems with Apple iPad 2 panels
The other day we passed along the news that Korean based manufacturer LG had cut the workforce in its mobile division by 30% On Friday, Reuters said that LG had not actually given out a pink slip to any employees. In a statement, an LG spokesman was quoted as saying, "We are always looking at opportunities to improve the performance of our mobile business but no decision has been made as to any job reductions." Despite being the world's third largest handset maker, the company has suffered through 5 consecutive quarters of losses in its mobile division.

Speaking of LG, last month we reported that the company had lost its status as the lead supplier of LCD panels for the Apple iPad 2 because of problems with the quality of the screens. According to the story at the time, LG's panel had failed a "drop test" and had problems with the backlight. As a result, the company had shipped between 2.5 million to 2.6 million units in July, short of the 4 million expected by Apple. As a result, the Cupertino based firm turned to its other suppliers to make up the difference. In July, Samsung had shipped 2 million panels and Chimei Innnolux (CMI) delievered 450,000-500,000 panels.

According to a new report from DigiTimes, LG has corrected the problems with the screens and is now back to providing Apple with the number of 9.7 inch LCD panels it had before the quality issues had popped up. This comes just in time as Apple plans on shipping 12 million to 15 million units of the iPad 2 in the third quarter which should benefit all the suppliers of the tablet.

Despite all of the business from Apple, LG is said to have cut production in the division that produces LCD panels because of slipping sales of  LCD televisions and notebook computers. Still, thanks to Apple, the factory is still humming.

source: Reuters, DigiTimes via BGR

Related phones

iPad 2
  • Display 9.7" 1024 x 768 pixels
  • Camera 0.7 MP / 0.3 MP VGA front
  • Processor Apple A5, Dual-core, 1000 MHz
  • Storage 64 GB
  • Battery 6944 mAh



1. BobbyTaba

Posts: 316; Member since: Aug 11, 2010

If they wanna stop their losses they got to be creative and stop copying Samsung software. Most people don't even like touchwiz anyway. They gotta be creative or copy HTC sense

2. ericlericl

Posts: 1; Member since: Sep 10, 2011

Apple should not use lg! I have not had a single lg product that has worked!

3. ivanko34

Posts: 617; Member since: Sep 04, 2011

maybe they go to lg because then can't go to samsung

5. Rawrzellers

Posts: 224; Member since: Aug 22, 2010


4. cupcake

Posts: 106; Member since: Apr 15, 2010


6. lubba

Posts: 1313; Member since: Jan 17, 2011

LG execs, why are you so dumb! Trying to cash in on android alone? Stupid,stupid, stupid! Why I say? Look at Motorola. They thought their droid phones was the bomb and not realizing the competition began to lose financially per year for how many years now. All of a sudden ceo Motorola Sanjay decides they may consider wp7 as a second portfolio but was seduced by google billion dollar buyout a week later. Stupid! Three stupid companies trying to cash in on android; Motorola, SE, now samsung and LG. Friends, the only smart asian company out there is HTC. They have both android and wp7 in their portfolio and makes almost equal amount of products. Add to their unique sense UI, excellent hardware and software, they will have continued financial growth year after year. You see HTC Smart business one portfolio to back the other in any case.

7. lubba

Posts: 1313; Member since: Jan 17, 2011

Warren Buffett says pit your stocks in different portfolios, from high to low risk.

8. rumorstopper unregistered

@lubba - Are you sure you know what you are talking about? LG has had Wp7 as long as HTC (Quantum - AT&T)... There is such a small demand for Wp7 that I don't see how this matters much anyways. Apple sales are dropping fast in the US with an increase in demand for Android handsets. Customers are bored with the iOS and want better hardware features that can only be found on open source Android phones....

9. Micro unregistered

Its very difficult time for LG to capture market....last year sept CEO resign.......before 2 months ago UK marketing head resigned......recently In china closed bejing center...ppl have much more belief on samsung nowdays performing very well........i think lg will do layoff

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