LG announces yet another 'organizational change' in the hope of a mobile business turnaround

LG announces yet another 'organizational change' in the hope of a mobile business turnaround
LG has had a rather hectic year in terms of high-end smartphone releases, pretty much throwing everything at the wall in the hope something would stick. While the V40 ThinQ, V35 ThinQ, and even G7 ThinQ are undeniably solid handsets, their box office potential was no doubt hindered by this apparent lack of focus, as well as extravagant pricing.

Of course, the tech giant is not looking to throw in the mobile towel... just yet, instead reshuffling its management to put the current president of LG’s Home Entertainment division also in charge of the long-struggling smartphone business.

Brian Kwon is (somewhat pompously) described as a “turnaround expert” in a new press release announcing his extended leadership role, having purportedly played a “critical role in transforming LG’s TV, audio and PC business into category leaders.”

Sounds like the perfect man for LG’s “mobile operations turnaround” job, as the company’s home entertainment department is indeed a well-oiled money-making machine. During 2018’s third quarter, for instance, LG TVs and audio products generated a healthy profit of almost $290 million, while its mobile devices lost more than $130 million.

Ironically, the latest “organizational changes” meant to enhance LG’s “strengths and opportunities” come exactly one year after the previous round of “leadership and business changes” aimed at “enhancing competitiveness.”

Back in November 2017, LG appointed Hwang Jeong-hwan as mobile division president, and although he apparently “successfully bolstered the operation’s quality assurance and product development efficiency”, that clearly wasn’t enough to turn a profit.

Ranked outside the world’s top seven smartphone vendors, LG is still the third biggest mobile player in the US, behind Apple and Samsung, with definite potential for further growth. It remains to be seen exactly how the company’s new smartphone division head plans to “turn around” the business. Losing the ThinQ brand would probably be a good start.

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8 Comments

1. maherk

Posts: 6770; Member since: Feb 10, 2012

I'm not a fan of stock Android, but if LG adopts it, I can see them turning this around, plus lowering the price if their flagships on release day. What's the point of screwing your faithful fans year in year out, when you sell them your phones for 800 and 900+ dollars, then drop the price by 250 dollars the next month? I'm not arguing that their phones don't deserve to be sold at a similar price as Samsung, Apple, and Huawei phones, but people are obviously not willing to pay that much for an LG. Take Huawei's route for few years, price your phones competitively, then when you gain enough market, maybe then gradually raise your prices to match your competition. LG, Sony, and HTC can't expect costumers other than those in their fanbases to pay premium for their phones these days, we're not in 2013.

2. haruken

Posts: 306; Member since: Nov 06, 2013

They're basically gonna copy samgsung even more. So expect the next LG flagship to have a curved screen.

3. Valinor

Posts: 174; Member since: Mar 26, 2013

I really dont get how they screw up this much.

4. OneLove123

Posts: 968; Member since: Aug 28, 2018

Lg v40 is very underrated.

5. Foxgabanna

Posts: 587; Member since: Sep 11, 2016

Facts brother, facts. To be honest it’s probably one of the best android phones I’ve used this year.

6. OneLove123

Posts: 968; Member since: Aug 28, 2018

I love it too. It’s up there with my note 9.

7. Jmar72

Posts: 6; Member since: Dec 15, 2017

Lg makes a good phone. They have two issues. 1 is they never update the OS. They are never current. Unless they throw a ton of bells and whistles like samsung. The device becomes boring. 2. They have poor resale value. Within months of launch they are on Swappa for 300 less brand new. With those two things alone, they lose the nerds/techy people.Option 1 impacts number 2. Other than that, where are they lacking? The phones are pretty solid build, nice camera, nice display, best sound and very good camera/Video.

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