LG's mobile chief keeps job as firm readies LTE push

LG Electronics decided to retain the head of its mobile business in hopes that front-office stability will aid LG in its bid for a 2012 turnaround.

The South Korean electronics conglomerate shuffled some executives and promoted others in a year-end reordering of its management team, and also replaced the head of its appliance business. However, Park Jong-seok, the head of LG's mobile communications division, retained his post.

LG's handset business has reported nearly $873 million in losses the past six quarters as the company has struggled to keep up in the smartphone market. LG has been falling behind the likes of Apple (NASDAQ:AAPL) and Samsung. Nevertheless, according to a Reuters report, which cited an unnamed source familiar with the matter, LG's top management wants to keep the mobile division stable in the hope that a focus on LTE smartphones will deliver better results in 2012.

Indeed, LG scored a key win with AT&T Mobility (NYSE:T), which will launch the LTE-capable LG Nitro HD Dec. 4 for $250 with a two-year contract. The device has a dual-core 1.5 GHz processor, a 4.5-inch 720p HD screen, 8-megapixel camera and up to 20 GB of total storage. AT&T expects to cover 70 million POPs with LTE by year-end. LG's LTE-capable Revolution smartphone is also available from Verizon Wireless (NYSE:VZ).

LG has said it plans to raise $940 million via a rights offering in a bid to boost investment in its struggling handset unit and other core businesses. The company will also boost capital expenditure spending on smartphones next year.

For more:
- see this Reuters article
- see this Korea Herald article

Related Articles:
LG to spend more than 50% of capex on handsets next year
LG to raise $940M to shore up handset biz
LG struggles in Q3, pins hopes on LTE smartphones
Rumor Mill: LG likely to ink Android patent-licensing deal with Microsoft

Sponsored by SNS Telecom

Shared & Unlicensed Spectrum in the 5G Era

Learn how shared and unlicensed spectrum will transform cellular communications in the 5G era. Featuring enabling technologies, key trends, business models, applications, spectrum availability, case studies and 5G NR/LTE equipment forecasts.