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