LG Electronics, formerly Lucky Goldstar, has announced that its sales targets will take a dive as it fails to establish itself among the big players in the smartphone market.
While rival Samsung’s impressive Galaxy sales figures are helping it through some poor results, LG Electronics has struggled to make a splash in the market.
The South Korean company cut its smartphone sales forecast to 24 million for this year, down from 30 million, reports Reuters.
In the first half of the year LG flogged 10 million of the top end phones, though this fell way short of the estimated 19 million smartphones to be sold – in the second quarter alone.
Furthermore, the relatively small size of its operations has meant that demand for cheaper phones has not lead to success in the low end market.
Overall, its handset forecasts were lowered from 150 million units to 114 million for the year, said LG handset boss, Park Jong-seok.
And with local rival Samsung managing to sell three million in just 55 days the heat is turning up on LG to stay in the market.
Of course, nothing cries out pricey ‘top end’ status like that trend for stereoscopic 3D capabilities. The Optimus 3D hopes to give its ailing smartphone division a boost.
Unfortunately for LG, industry watchers agree that the company’s priorities lie in being first-to-market on gimmicks, rather than sustainable business.
Tellingly, it is claiming to be the first phone manufacturer to incorporate 3D technology into a handset with the latest release. A lofty boast considering Hitachi has released one already.
In a press release, Jong-seok outlined his vision of 3D as the “natural step in portable entertainment”, and talking up the Gameloft 3D titles which “must-be-seen-to-be-believed”.
As a goodwill gesture, we will take him at his word and wait to see if his predictions ring true.