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LG Electronics chief resigns over poor phone sales

updated 08:15 am EDT, Fri September 17, 2010

LG Elec CEO quits to take blame for phone share

LG Electronics CEO Nam Yong resigned today to take responsibility for poor phone sales. The executive will leave as of October 1 and will be replaced by early company veteran and LG International head Koo Bon-joon. Replacements normally wait until the end of the year, but the company wanted to give Bon-joon time to prepare for the next year, LG said.

Other executives may face departure, and LG's mobile group chief Skott Ahn may be next to face a departure or change of position.

Nam Yong's exit came after the company not only lost nearly two whole points of market share to hit nine percent, according to Gartner estimates, but after the mobile division of the group posted both its worst loss in recent memory for the spring and is expected to repeat a similar performance for the quarter ending this September.

Most of LG's struggle has been to gain relevance in smartphones. A deal with Microsoft that made Windows Mobile the OS of choice for LG proved costly as many ended up avoiding LG's smartphones in favor of the iPhone, BlackBerry phones and later Android. LG ended up backtracking on its policy and switched to making mostly Android phones this year. The fruits of the switch won't come in earnest until after Nam Yong leaves, when the Optimus series ships worldwide.

LG is planning a partial return to Microsoft with Windows Phone 7 devices like the Optimus 7.




by MacNN Staff

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Comments

  1. ctt1wbw

    Joined: Dec 1969

    +6

    Hmmm...

    LG? Don't they make washers and dryers too?

  1. Faceplant

    Joined: Dec 1969

    -7

    They are getting soft...

    I thought they used to do hari kari when something like this happened. Now they can just step down?

  1. kerryb

    Joined: Dec 1969

    +5

    please excuse the above racist comment

    Interesting strategy. go with a Windows OS for your smart phones, lose your shirt, switch to Android and when that seems to be working, switch back to Windows.

  1. JuanGuapo

    Joined: Dec 1969

    +2

    He wasn't being racist, relax.

    I hate when ppl throw out the racist card whenever someone mentions the remote possibility of a cultural stereotype. Also, hari kuri is done by the Japanese--not the Koreans. ;-)

    As far as LG, they're hurting....everyone is hurting in this economy--except Apple.

  1. lamewing

    Joined: Dec 1969

    +3

    Koo Bon-joon

    Will Koo Bon-joon be forced to resign next year when LG's phones don't sell as well as they wanted?

  1. Mr. Strat

    Joined: Dec 1969

    +4

    BFD

    LG = Lotsa Garbage

  1. Foe Hammer

    Joined: Dec 1969

    +3

    Calling Steve Ballmer ...

    ... but not on a Windows Phone 7.

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