Embracing Android is part of Nam's turnaround plans for LG, which has fared poorly recently as the firm's 3DTV and smartphone businesses have fallen behind competitors such as Samsung. Its smartphone business, which accounts for 45% of the firm's sales, has seen some of the worst performance. Operating profit margins for the division fell to 0.9% in the first quarter of this year, down from 6.7% in 2009.
The firm is hoping Android will revive its smartphone business. It already sells some Android handsets through Verizon Wireless in the US and is in talks with Asian operators to expand its Android range closer to home. However, the firm concedes it will take some time to turn the division around, and it expects another poor quarter for the division.
Google has made significant inroads into the mobile market over the last year. Last quarter, phones running the platform outsold the iPhone in the US, according to NPD. HTC was one of the first firms to embrace Android, and its handsets running the OS have received a generally favourable response. Motorola has also thrown its weight behind the platform in a bid to pump new life into its smartphone business, and has seen some success with the Motorola Droid handset.
LG is not abandoning Microsoft completely. But focusing on Android this year will give the firm time to assess whether Microsoft's ambitious attempt to revive its mobile business with the Windows Phone 7 OS will be a success. Microsoft plans to launch Windows Phone 7 before the end of the year.
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Labels: Android , LG
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