LG fires executives because of the G5
The LG G5 was an interesting phone from the outside. But as we grew to know it, it just hasn’t been the sparkly, modular, all-in-one lovable hunk of painted metal we could give our highest praise for. And if that’s what we thought, boy, imagine what consumers saw in it.
It’s with that in mind that the chaebol has made no gripes about cutting its losses and cutting its ties with the people who made the G5 possible.
Senior executives have been replaced. A new management unit is now controlling R&D, manufacturing, marketing and sales. Overseas sales will now be the driving motor for the next releases. This is all for the mobile division to stave off a fourth consecutive quarter of operating losses.
Even a staff reduction in the hundreds couldn’t prevent last quarter’s red ink.
“[The] announcement is because LG Electronics’ latest flagship G5 smartphone failed to generate sales,” LG stated.
The company ranks third in US shipments and seventh in global sales. While it can be profitable in those positions, one anonymous LG insider thinks that the company has “failed to realize ‘economies of a scale,’ unlike Apple and Samsung […] LG’s difficulty in the smartphone business is a structural problem that can’t be addressed without radical measures such as relocating all of its manufacturing lines to Vietnam and other cheap Asian countries.”
What do you think? Is LG putting standards for itself that it needs to compromise on? Or has it been that unique strategy that’s appealed to your sensibilities? We’ve seen it grow through the iterations of the Optimus G — now just “G” — series with innovative design and functionality. But did the chaebol lose its way with the G5?