Verizon plans to release the LG Lucid, which runs an old Android operating system, on March 29, highlighting the Korean company's struggles and lagging product line.
The Lucid, which runs on "Gingerbread," rather than most recent version, dubbed "Ice Cream Sandwich," comes with 4G LTE connectivity and a 5-megapixel camera.
But the Lucid's specs won't set it apart from a fiercely-competitive crowd. Smartphone users are increasingly drawn to higher-end offerings, with iPhones making brisk sales and the upper level of Android-based devices nearly keeping pace.
Following disappointing numbers in 2011, LG looked to rebound by introducing a stronger smartphone roster, as weak product offerings hastened the company's fall behind competitors like Samsung and Apple. The Lucid, which doesn't fulfill the company's ambitions to introduce rivaling products, paints a picture of a middling device unable to compete with the iPhone or Galaxy line.
The Lucid looks less than promising, but the company's mobile division sales are on an upswing. LG's Spectrum, also carried by Verizon, is doing well, boasts an upgrade to Ice Cream Sandwich and better specs than the forthcoming Lucid. Profits from its high-end roster are fueling the company's turnaround, which makes its release of the decidedly mid-range Lucid all the more perplexing.
Prices are not released yet for the phone, but the company may target budget-conscious smartphone users and plans to offer the Lucid at an affordable price. Otherwise, the LG Lucid lacks a hook to attract customers.
LG Electronics' handset sales improved, gaining traction in the smartphone market despite the company's overall loss, as the company's strategic turn towards upscale smartphones faces stiff competition.
The South Korean company struggled to contend with Samsung and Apple as consumer demand increased for high-end smartphones. After seven disappointing quarters, LG rebounded by focusing on its own high-end smartphones, powered by Android, as well as growth in 3-D television sets. Although the company reported overall losses, its mobile and television divisions returned a profit, showing its push to invest in research and development in 2010 is paying off.
LG strengthened its sales by introducing smartphones running on Google's Android OS, like the Nitro HD. The company highlighted the strengths of its sharp displays and quick processors, emphasizing higher-grade hardware, and these models sold well.
The company further improved its position as a quality handset maker by partnering with Intel to introduce a new smartphone model driven by Intel's processors. LG will receive a subsidy for placing Intel's chips in its smartphones, in addition to cementing its push for top-notch hardware.
Verizon began selling the LG Spectrum in January. The 4G phone boasts strong battery life, HD video, and can upgrade to Android's Ice Cream Sandwich. The phone exemplifies LG's strategic shift into the lucrative higher-end of the smartphone market, and the company likely will continue to push in this direction, especially since it is yielding profits.
LG, however, faces steep competition as it moves further into upscale smartphones. Its new handsets encroach on Samsung's terrain, and the South Korean companies are likely to engage in intense rivalry.
The company must also contend with Apple's iPhone juggernaut and fellow upstarts like Windows phones from Nokia. Finally, with RIM plotting a comeback, the market is expected to be saturated with various smartphone offerings.
LG's strategic shift into the high-end smartphone market is paying off for the company, but the company's continued success in the mobile market depends on its ability to distinguish itself from the deluge of smartphone options and come out ahead.
The South Korean government is organizing a consortium of local companies like Samsung and LG to develop a range of open, cloud-based mobile operating systems to compete with products from Google and Apple.
According to reports, Ministry of Knowledge Economy deputy minister Kim Jae-hong Monday said his government planned to create Web-centric operating systems first for PCs and laptops, and then for smartphones and tablets.
"We will forge ahead in developing a new kind of operating system, which is being seen as a next-generation product, in order to build the kind of advantage we do not enjoy in the market for smartphones and tablet PCs, which is dominated by Google and Apple," Kim said, according to the publication The Chosun Ibo.
Reportedly, Samsung, a successful maker of handsets featuring Google's Android OS, may have been swayed to join the national effort after Google announced its plan to acquire Motorola Mobility, one of the Korean company's competitors.
Google said its purchase of Motorola Mobility, with includes the company's approximately 24,000 patents either awarded or pending, would be used to protect manufacturers of Android devices, like Samsung and LG. For now, many of the Android handset makers are at least publicly supporting the move.
But there is concern Google may in time give preference to Android updates and development through Motorola, or even strike out on its own as a hardware manufacturer.
"We cannot completely rule out the possibility of Google jumping into the smartphone business in the future," said Kim, alluding to the possibility that Google intends to emulate Apple's model and have Motorola develop official Google phones.
Additionally, Samsung may be motivated to jump on board in light of the company's ongoing and increasingly escalating legal battles with iOS-maker Apple, which number more than a dozen separate cases in nine countries.
For its part, Apple may welcome a Korean-based OS, since Asian handset makers on their own OS may weaken rival Google's market share, which is strong in Asia overall.
The development group is expected to launch by the end of the year, according to The Korea Herald, and the government may help promote the use of the operating system.
The next-generation iPad may feature a display supplied by a new manufacturer, the latest speculation on the increasingly anticipated tablet device which indicates Apple's legal battles with Samsung may be taking a toll.
Both Samsung and LG Display are competing to provide the higher resolution screens for the iPad 2's successor, according to reports from The Korea Times. Sources say the display will feature a resolution of 2048 by 1536 pixels per inch, a big improvement over the iPad 2, and may offer much buzzed-about high-definition resolution. The screen size is expected to remain at the same 9.7 inches.
The competition between suppliers for the iPad 3 display contract may mean current supplier Samsung's legal wrangling with Apple is prompting the iPad maker to look elsewhere. Currently the major display supplier for the iPad 2, Samsung has been in and out of court with Apple this spring, arguing over patent protections and trademark issues.
The legal battles have gotten so contentious speculation suggests Apple may seek another LED and chips supplier in Taiwanese company TSMC, replacing Samsung.
In addition, Samsung's AMOLED technology apparently isn't fully HD and has, the Korea Times reports, "shorter life spans, and are easily contaminated." If HD is to be part of the next iPad tablet, this news would support the idea that Apple may be looking to other suppliers. Samsung still appears to be a contender, however, which may mean the legal battles haven't fully damaged the companies' business relationship.
LG may have an advantage over Samsung, however, as it already supplies high-resolution HD displays for other electronics manufacturers.
Reportedly, the Cupertino, Calif.-based company is already testing displays at a lab in China. These reports suggest Apple may roll out two versions of the next generation iPad: a "pro" version with HD display and a "basic," more affordable version without some high-end features.
Apple may be varying the price point in the iPad, much like the company currently does with its other product lines. This practice may keep it competitive as tablets from a host of other makers, many of them running on Android, begin to flood the market.
Regardless of whether the device has HD or comes in two versions, one thing is for sure: estimates that the iPad 2 alone may sell 30 million units by year's end suggest the display contract for the latest device will be quite lucrative for the company that wins it.
LG today announced the Optimus Pro and Net, two new mid-range Android devices, as the company continues to bank on Google's mobile OS to turn around its sluggish smartphone business.
The Optimus Pro runs on Android 2.3 Gingerbread and features a full QWERTY keyboard in a portrait-style form factor, with a 2.8-inch and 800-megahertz processor. It has 150-megabytes of storage and is outfitted with a 3-megapixel camera and support for Wi-Fi. The Pro will ship in white, black, and titan.
It joins a recent wave of smartphones featuring a BlackBerry-like design, such as the Droid Pro and the HTC ChaCha. These may aim for BlackBerry users nervous about Research in Motion's flagging fortunes and looking for a similar device elsewhere.
LG's other recently announced release, the Optimus Net, features a 3.2-inch display, 800-megahertz processor, 150-megabytes of storage and a 3-megapixel camera. Some markets will find the Net supporting NFC capability and QWERTY keyboards, while Brazil, China and Asian markets will also support dual SIM cards. The Net will be available in black or white.
With the Net, LG aims for the social networking crowd, combining popular social networking services in one convenient widget on the home screen. With the widget, users can multitask between updating their status on Facebook and Twitter while reading their friends' social media feeds on the same screen. The widget also integrates one-click photo sharing with multiple social media accounts from the home screen.
The phones continue LG's deepening push into Android smartphones, which the company is leaning on to help turn around its fortunes in the mobile market. Slow to realize the rise of smartphones, LG is now following phone makers like Motorola and HTC into the Android sector, piggybacking on the platform's popularity.
These latest two models may help LG find an audience among first-time and newer smartphone buyers, but with their middling processor power and relatively small screens, the company has yet to really compete in the higher-end of the market, dominated by HTC and Motorola.
Both handsets are expected to hit 30 markets across Europe this summer, and will be shipped worldwide later this year. The company has not yet released carrier or price information in the U.S.
Verizon plans launch the LG Revolution, its third 4G-enabled phone, on May 26 for $250 with a two-year contract.
The Basking Ridge, N.J.-based carrier said the sleekly-designed Revolution features a 4.3-inch display, Android 2.2 software and two cameras -- a 5.0-megapixel camera with HD video capture and a front-facing 1.3-megapixel lens for video chat.
LG is focusing on high-end, app-centric smartphones after posting a staggering $229 loss in the fourth quarter. The company trimmed the loss to $14.6 million the first quarter, but it is still hardly prosperous.
The South Korean company, which has struggled in the mobile sector due to a weak lineup of offerings and stiff competition from the iPhone and ever-growing Android competitors, has redoubled efforts and investing heavily in research and development.
Accordingly, part of its revamped plan includes joining the Android game, catching a ride on the platform's already widespread popularity, just as Motorola and HTC are doing.
Smartphones comprise 20 percent of LG's profits, a figure it hopes to boost to 30 percent by the end of this year, relying heavily on the Revolution, as well as its promising launches earlier this year of the Optimus Black, 2X and 3D smartphones.
In April, the company stated its aim to "improve its product mix by launching new smartphones including the LG Optimus Black and the LG Optimus 3D and gain profitability by further cutting costs."
The Revolution follows Verizon's launch of HTC's Thunderbolt -- both ushering in a new era of beefier, faster Android offerings for the carrier's growing 4G network.
LG plans to debut the Optimus Black, the world's thinnest smartphone, in the U.S. this summer, following its European launch later this month.
The South Korean handset maker said the Optimus Black measures only 9.2-millimeters thick and weighs 109 grams, making it one of the lightest as well as the slimmest on the market. It also runs on Android 2.2 and boasts a 4-inch "Nova" display, which the company says is one of the clearest on the market. The touch screen reportedly works cleanly even in sunlight, avoiding battery drain like AMOLED displays.
The Optimus Black includes a new Wi-Fi-Direct feature, which allows it to transmit information quickly between two phones. There's also a front-facing 2.0-megapixel camera for chat and a rear 5.0-megapixel lens for photos. The device includes 2-gigabytes of NAND Flash storage.
LG is hoping to reverse a downward trend in its fortunes, blaming parts shortages from the Japanese quake and tsunami and political instability in the Middle East. In April, the company said it hopes to "improve its product mix by launching new smartphones including the LG Optimus Black and the LG Optimus 3D and gain profitability by further cutting costs."
The Optimus Black could be just what LG needs to get back in the game. LG is also rumored to be offering the phones in white and pink, ostensibly due some months after the Black's European, and subsequent U.S., debut.
LG is still in the red, owing to poor sales of mobile phones and TVs, prompting the company to hasten its turnaround efforts by pushing out a new line of smartphones.
The South Korean company reduced its losses to $14.6 million in the quarter, from a staggering $229 million in December 2010. Since underestimating the importance of high-end, app-centric phones in 2009, LG's shipments have slipped far below Apple's and Samsung's sales.
LG's handset missteps echo those of Nokia, which also underestimated the importance of the app-centric smartphone market. But while Nokia has pinned its hopes on Microsoft's unproven Windows software, LG is following Motorola and HTC into the Android game, drafting on the platform?s already-massive popularity.
"We still have many weaknesses," said David Jung, LG's chief financial officer. "We still have a long way to go."
LG is also pinning its hopes on new smartphones, which make up 20 percent of its profits. The company plans to introduce three dual-core handsets -- the Optimus Black, 2X and 3D -- in the coming months. LG hopes these phones can contribute 30 percent of total profits this year.
The company also started rolling out 3D TV sets after the unit, which makes up 40 percent of its total revenue. LG expects to sell 45 million of these 3D displays this year.
AT&T launched its first prepaid smartphone today, the LG Thrive, along with postpaid twin LG Phoenix, in a seeming effort to diversify after losing its iPhone exclusivity.
Both Android-based phones are set to hit stores on April 17. The specifications -- 600-megahertz processor, 3.2-inch touch screen display, 3.2-megapixel camera, Android 2.2 -- are decidedly entry-level. The only difference between the phones are color and pricing: the contract-free Thrive handset costs $180, while its identical brother the Phoenix runs $50 with a two-year contract.
"Thrive brings more choice and more value to our GoPhone customers by delivering the benefits of a smartphone, balanced with functionality and affordability," said Judy Cavalieri, vice president of Voice and Prepaid Products at AT&T.
AT&T needs to offer its customers more choice and value, especially after losing exclusive iPhone rights to Verizon earlier this year. Since it sells essentially the same Apple products as Verizon, it?s important that AT&T differentiate itself with other handsets and improved talk and data plans.
To compete, AT&T already halved the price of its iPhone 3G to $50 in January, probably trying to lock customers into two-year plans before they bought Verizon iPhones. And the company will also roll out twelve Android phones this year, a selection that, if properly segmented, could appeal to a wide range of buyers.
Furthermore, AT&T unleashed the LG Thrill in March, a high-end phone that stands out with its 3D screen.
Offering its first prepaid option should also appeal to an increasing number of customers who don't want to be locked in with a two-year contract.
T-Mobile today said it will start selling the LG G2x, a dual-core gaming phone, on April 20 for $200 with a two-year contract.
The Bellevue, Wash.-based carrier, which AT&T has agreed to acquire, said the G2x offers a powerful 1-gigahertz dual-core chip, made by Nvidia, for snappy gaming with high-quality graphics. It also runs on stock Android 2.2 software, meaning faster performance, since customizations don't bog down the interface. It features a 4.0-inch touch screen, high-speed 4G Internet, an 8.0-megapixel camera and a front-facing lens for video chat.
T-Mobile will sell the G2x online from April 15, before it arrives on store shelves a few days later. Customers who don't want to sign a plan can also buy it for $500, unsubsidized. T-Mobile also plans to launch its new Sidekick 4G, redesigned with Android software and 4G speeds, on April 20.
Last month's AT&T announcement that it planned to buy T-Mobile for $39 billion rocked the wireless industry. The deal, which needs regulatory approval, would give AT&T 130 million total subscribers. That would give AT&T a lead over Verizon, while leaving Sprint a distant third.
The G2x and Sidekick 4G could be one of the last phones to be released by T-Mobile before the deal is passed.
Tags:
