LG Electronics unveiled 4G phone, as mobile unit continues to struggle
LG is trying to rescue its loss-making handset business. So a new 4G phone is a perfect move for the world’s No.3 handset maker. The hardware offering of the model with a 4.5-inch high-definition screen is similar to Samsung’s Galaxy S II LTE.
The 4G LG phone is powered by Qualcomm Inc’s 1.5 GHz dual core processing chip and Google’s gingerbread version of the Android operating system. The new device has an 8-megapixel rear camera and 1.3-megapixel front-facing camera.
The high-end 4G model comes after LG suffered five consecutive quarterly losses from handset sales and is set to report a wider loss for the September quarter later this month due to a lack of attractive high-end models.
“With this product alone, LG won’t be able to dramatically improve earnings, but it showed LG has narrowed the gap with Samsung in terms of both hardware and software capability, and it does have capacity to make compelling products,” said Woo Chang-hee, an analyst at LIG Investment & Securities.
In July, the company cut this year’s smartphone sales target by 20 percent to 24 million units and gave no outlook for when the business may become profitable.
Many analysts have forecast the business to turn profitable next year, but confidence levels have waned after the consecutive string of quarterly losses.