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LG Cuts Sales Targets By 20%

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LG has cut its overall smartphone sales forecast to 24 million handsets in 2011, down from the previous figure of 30 million.

This downturn in fortunes for LG comes in the same week as rival handset maker HTC posted yet another record quarter in terms of profit. LG told journalists that it was unable to provide a time frame for when it believed its phone unit would return to profitability.  "Our overall performance is gradually improving ... but it's difficult to give a precise prediction when our business will turn around due to a fast changing external market environment," Park Jong-seok, head of LG's handset division, told reporters.

LG Optimus 2X

Looking at the mobile phone sales in total, LG has also cut these figures from 150 million to 114 million.  In the first half of 2011, LG sold around 50 million handset in total with only one fifth of these classed as smartphones. This compares unfavourably to its South Korean counterpart Samsung who expects to sell 19 million smartphones in the second quarter alone. Indeed Apple, who’s only model, the iPhone 4, has sold around 35 million unit in the first half of 2011 despite the phone being a year old now. We recently reported on problems facing LG’s flagship model, the Optimus 2X which won’t have helped with consumer confidence in LG's handsets.

With HTC and Samsung the two companies who have really caught the Android wave, companies like LG need to move quickly if they don’t want to get left behind.

Source: Reuters

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