News by Andrew Kameka on Friday November 22, 2013.
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A Korean news report suggests that LG would decrease its mobile phone resources in order to focus more on its HD television sets. The speculation, sparked by ET news, made no sense, and LG has issued a statement saying the reports are "completely untrue." LG issued the following statement, via CNET:
"We are more committed than ever in making the LG brand a major player in the mobile space. And we think our products this year speak for themselves."
An official response from LG is unnecessary to see why the company backing away from smartphones to focus on TVs makes no sense. For starters, LG and several other corporations have managed to allocate resources for both without issue for quite a while. It also would be risky for LG to let up on the gas of smartphones at a time when it's starting to reap the rewards of big investments. LG's mobile division turned a profit in October 2012 for the first time in several quarters. By October 2013, the mobile division had increased revenues by 24 percent. Why walk away from a strategy that's paying off?
Apple and Samsung continue to dominate smartphone sales, but LG is improving its position. The mobile industry is a critically important business, so moving workers to other divisions rather than continue on its path would be against LG's best interests. That's why I'm more likely to believe LG when it says the rumors come from "non-credible sources and uninformed speculation."source: CNET
Andrew is based in Miami, Florida.