LG, the electronics giant who makes everything from televisions to cell phones, has announced its plan to remove its business-solutions division next year and focus on the four remaining divisions: home entertainment, home appliance, air-conditioning & energy solutions and mobile communications. LG posted some unimpressive numbers and saw a dramatic decline in profits over the third quarter, with a pretty big decline in its handset business.
Earlier this year we talked about LG’s performance in the U.S. market and just how it was going to compete with handset makers like Apple, HTC, Motorola and Samsung. To date, LG still doesn’t have a killer smartphone that will eat away at the competition or at least offer some incentive to choose it over competitors. The Optimus 7, its latest smartphone and a Windows Phone 7 device, has been decent enough but still so bland that it doesn’t really steal attention away from the HTC HD7 or Dell Venue Pro.
To buckle down and focus on certain products, LG is cutting off its business-solutions division. As reported by the Wall Street Journal:
“To give more emphasis to individual products, the business solutions company will be dissolved, with the monitor and solution business units transferring to the home entertainment company,” LG said in the statement.
Analysts said the restructuring fuels hopes that LG’s focused and a slimmer management would help the company see a turnaround in its business earlier than expected.
Furthermore, LG is going to continue operating at a loss for the fourth quarter, but is hoping to to see gains and improvement as early as the first quarter next year.
Although LG is huge in home appliances and entertainment, it has so much potential to make great things in the mobile space. In order to really thrive in the consumer electronics business and turn its decline around, LG absolutely has to do something about its lackluster presence in mobility.
[Via: WSJ (sub required)]