A few days ago LG CEO Nam Yong was removed from his position to make way for a new leader in the form of Kon Bon Joon. Yong’s removal was due to poor smartphone sales.
LG have a few smartphones available on the market which use the Android operation system (Optimus One and Ally) however it has failed to reach targets and keep up with leaders such as Apple, Samsung and Motorola. HTC are even outperforming LG which is not something the company is happy with.
Koo Bon Joon comes from the head of trading firm LG International and the move is almost a carbon copy of the recent removal of Nokia CEO Olli Pekka Kallasvuo for the same reasons. Koo Bon Joon is reckoned to reshuffle the company to actively cope with the fast changing IT industry and hopefully to narrow the margins between Apple and other leading smartphone companies.
Even though smartphone sales are dropping for LG, the sales still account for one third of the groups total sale and one quarter of the total revenue. Sadly LG have reported a $103 million loss for the quarter.
KitGuru says: Tough times ahead for LG as well as Nokia. Perhaps with new leadership the fortunes will change.