LG eyes over 5m smartphones

LG Electronics aims to sell more than 5 million units of smartphones this year, as part of its efforts to turn around its ailing handset business. 
“We aim to sell more than 5 million units of smartphones this year,” an LG spokesperson said, adding that the handset vendor has already sold around 1.2 million units of smartphones in the first half. 

The Korea Times reported on Wednesday that the world’s No.3 handset maker targets 6 million units of smartphone sales this year, citing a high-ranking executive. Around 70 percent of its smartphones sold will be based on Google’s Android operating system, while the remaining 20 percent will be powered by Microsoft’s Windows Mobile, the report said. 

It remains to be seen whether LG would be able to achieve its smartphone target given its late entry into the market and intensifying competition. 

LG plans to release its flagship smartphone Optimus One With Google only at the end of the third quarter, whereas its rivals have already flooded the market with their new smartphone models. 

Its poor smartphone line-up has taken a huge toll on the Korean handset giant, with its handset business swinging to a loss in the second quarter. 

While focusing more on smartphones, LG plans to reduce its heavy reliance on feature phones, which give slim margins.

The Korea Times reported that LG plans to halve the number of its phone models to 70 this year, adding that the company may cut its sales target for its handsets from the current 140 million units. 

The LG spokesperson said his company has no plan to lower its handset sales target for now. 

Meanwhile, LG’s cross-town rival Samsung Electronics eyes 18 million units of smartphone sales including 10 million units of Galaxy S and Wave smartphones. Galaxy S is based on the Android operating system, while Wave runs on Samsung’s proprietary operating system Bada. 

Despite ranking second and third in the total handset market, Samsung and LG are struggling in the smartphone segment. 

Nokia topped the global smartphone market in the second quarter, followed by Research In Motion, Apple and HTC, according to data from IDC. Samsung placed a fifth, while LG failed to make the top five list.