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LG appoints new CEO to revitalize its mobile business
Despite releasing some very capable hardware this year, LG’s mobile division hasn’t been performing particularly well lately. Although the V20 looks to be off to a strong start in the US, the launch of the G5 earlier in the year saw a 23 percent drop in mobile sales in the previous quarter, which is pretty much a full blown disaster for a flagship manufacturer. To help steer LG’s various divisions to brighter horizons, the company is appointing CEO Jo Seong-jin to head up the business.
LG announced a management reshuffle on Thursday, in which the company eliminated its triple-CEO structure and promoted Jo as sole CEO of LG Electronics. Jo had previously headed up LG’s home and appliance unit since 2013 and oversaw a 25 percent boost to the company’s operating profit last year. Despite the reshuffle, LG Electronics’ mobile chief Cho Juno will retain his position into next year.
“LG Electronics decided to name Jo as our new sole CEO in recognition for his charismatic decision-making in recent years to launch innovative new products, and his performance has been proven in quarterly earnings,” – LG Electronics official.
The reshuffle comes after LG’s mobile division reported an operating loss in six consecutive quarters, since Q2 2015. Although much of the focus has been on LG’s flagship G5 and V20 releases this year, the company’s strategy for the lower end market hasn’t been working out either. Budget smartphone launches in the US have failed to grab a significant market share and has ended up worsening the division’s profitability at a time when the G5 also posted weak sales.
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