LG seeking Taiwan ODMs for inexpensive Android smartphones
Daniel Shen, Taipei; Steve Shen, DIGITIMES?[Friday 23 March 2012]
LG Electronics has renewed talks with Taiwan-based handset ODMs for the production of inexpensive Android smartphones amid its ongoing efforts to rekindle its smartphone business that will also emphasize LTE-enabled and quad-core models, according to industry sources.
LG reportedly has set a goal to ship 35 million smartphones, including eight million LTE models, in 2012, increasing 50% from a year earlier, the sources noted.
Since the beginning 2012, LG has moved offensively to the mid-range and high-end segments, including the launch of its first quad-core Optimus 4XHD, the 5-inch Optimus Vu and the Optimus 3D MAX, in addition to its L-style series.
However, even if LG reaches its goal of shipping 35 million smartphones this year, the company will still lag far behind Apple and Samsung Electronics as well as Nokia, HTC and Sony Mobile Communications, and could also be outperformed by Huawei Devices, in the segment. In fact, LG may only manage to push up its share in the global smartphone sector to 5-6% in 2012, up slightly from 4-5% in 2011, the sources estimated.
LG is now in talks with Compal Communications and Arima Communications for possible cooperation in the production of entry-level and mid-range Android phones, noted the sources. But volume shipments from Taiwan ODMs to LG will begin at the end of 2012 at the earliest if talks with the two ODMs proceed smoothly, said the sources.
Source: http://www.digitimes.com/news/a20120323PD211.html
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