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LG Changes Focus to TVs From Smartphones for 2014

Despite recent successes with the LG Optimus G, the Nexus 4, the LG G2, and the recently launched Nexus 5 smartphones, LG is still finding it difficult to compete in this competitive industry. As such, the South Korean manufacturer will be changing its focus and turning its attention from phones to HDTVs next year.

This, however, doesn’t mean that LG will be conceding the smartphone market to South Korean rival Samsung or to Apple–it just means that LG will be scaling down the division.

“LG Electronics is more likely than not to maintain the current level in the R&D sector of the MC Division, but greatly reduce the support organization,” ET News reported. “Some forecast that LGE would reduce 10% of the entire manpower of the MC Division.”

LG-nexus-5-renderingSo while research and development levels will continue in the smartphone division, overall support staff will likely be cut back by as much as ten percent. So despite LG making some concessions in the smartphone space, it hopefully looks like innovation will not be lost.

Recent innovations coming from LG include the flexible display LG G Flex, which boasts a more resilient design to accidental damage. Additionally, LG is also rumored to be entering the smartwatch category and the company may be creating its own Google Glass competitor with a heads up display as the firm had recently filed a trademark for the “Glasstic” name.

And though LG has been finding small successes with the premium “G” line of smartphones and tablets, the company is facing mounting risks at the low-end to mid-range segments from Chinese manufacturers like Huawei, ZTE, Oppo, and others. Focusing on the TV market may be a strategic short-term move for LG to remain profitable.

At this time, it’s unclear how the shift in focus will affect LG’s Android product line in the future, especially its relationship with Google. LG had partnered with the Android OS-maker in launching both the Nexus 4 and Nexus 5 and recent speculations suggest that LG will again partner with Google to debut a refreshed Nexus 10 slate later this year.

 

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