What does one of the largest consumer electronics companies in the world do when their mobile unit profits are down more than 90%? Call the Android ambulance.
We reported last month that LG saw a 99% decrease in profits. Some of there turmoil was thought to be part of a shake up at their Korean headquarters. You may remember earlier in the year that LG had hoped to introduce smart phones by the end of the year. That is NOT going to happen.
Despite all this un-lucky news for Lucky Goldstar, they made a huge bet on Android and its paid off! LG has announced that they’ve sold one million Optimus handsets in just 40 days.
When LG originally announced the Optimus, it was rumored to be their “high end” Android device. As the Optimus variants got closer to release we learned that they were high quality midrange devices. Although they are in the “mid-range” category they are feature packed and stocked with the latest version of Android (Froyo 2.2).
Price point and value proposition are definitely the driving force behind the success of the Optimus line. T-Mobile and Sprint were the first to bring the Optimus to the United States, and both priced substantially below $100 (subsidized)
The success of the Optimus has restored confidence in Android for LG. Engadet just leaked LG’s plan for a dual core Nvidia, Tegra 2 handset dubbed the “Star” in the first part of 2011, possibly before HTC and Motorola.
Source: Venture Beat, Engadget