LG announced a $945 million rights issue which is based on the need to generate more revenues due to its somewhat floundering smartphone division, Reuters reported.
While there is a massive smartphone boom around the world, it’s clear that there are winners and losers in this battle. Apple, HTC and Samsung appear to be winning with increased shipments each quarter and in the case of Apple, a profit margin that can’t be touched by any other company in the industry. Despite some solid products, it’s looking like LG can be lumped into the loser category with the likes of Research In Motion, Nokia and Sony Ericsson.
The report said that the smartphone division has lost over 1 trillion won over the last six quarters. Unlike companies like RIM or Sony Ericsson, I’d argue that LG has been keeping pace with the competition with devices like the Optimus and the upcoming Optimus HD but it just hasn’t been able to move units as quickly as the competition.
Here’s hoping that LG can turn it around, as we do benefit when all these companies are competing at a high level.
[Via Reuters]