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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

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posted on 20 Nov 2013, 14:29 15

1. Ninetysix (Posts: 2672; 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: 3718; 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: 3718; Member since: 03 Nov 2012)

I knew it.

posted on 21 Nov 2013, 01:13 12

38. Dr.Phil (Posts: 1639; 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: 301; 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: 307; 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: 14; 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: 307; 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: 463; 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: 560; Member since: 18 Sep 2012)

The chances were low but now miniscule.

posted on 21 Nov 2013, 08:51 2

42. Finalflash (Posts: 3527; 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: 307; 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: 42; 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: 24941; 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: 307; Member since: 14 Sep 2013)

Not true...

posted on 20 Nov 2013, 16:30 6

17. PBXtech (Posts: 1032; 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: 138; 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: 3527; 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)

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: 24941; 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: 158; 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: 3535; Member since: 21 Dec 2012)

Sony is already here!

posted on 22 Nov 2013, 12:01

58. ArtSim98 (Posts: 3535; 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: 420; 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: 3535; 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: 1976; 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!!!

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