LG Cuts Down Smartphone Sales Target by 20%

LG hasn’t seen much success with its Android smartphones, except for a few moderately successful ones like the dual core LG Optimus 2X or the budget LG Optimus One. It is, however, one of the largest phone manufacturers in the world.

Compared to LG, other manufacturers including Samsung and HTC have been successful in creating really popular devices like the Samsung Galaxy S, Galaxy S 2 and the HTC Sensation. The Samsung Galaxy 2 recently broke records by selling more than 3 million devices in 55 days.

Since LG doesn’t offer its smartphones at a significantly lower price point than Samsung or HTC, it hasn’t been able to attract customers from their camps.

Today, Park Jong Seok, the head of LG’s mobile business stated that LG expects to sell 24 million smartphones this year. This estimate is down 20% from the original estimate of 30 million units.

LG’s mobile phone division isn’t even breaking even right now; it had a $94 million operating loss in the first quarter of 2011. They don’t expect the mobile division to turn profitable in the second quarter as well.

Consumers are flocking to Samsung and Apple’s flagship devices – the Galaxy S 2 and the iPhone 4. LG recently launched the LG Optimus 3D, but it was overshadowed by the Samsung Galaxy S 2 soon after its launch.

LG is apparently working on a new device which will sport a 4.5 inch HD display. It may also launch the LG Optimus Pad in some international markets soon.

I wouldn’t be very bullish about LG’s prospects right now.

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